The euro was bolstered in the last 24 hours by speculation on anticipated interest rate rise by the European Central Bank (ECB).

The euro stood at 1.4721 against the pound and 1.2078 to the dollar.

Hitting a ten-month high against the yen, the single European currency followed a positive trajectory as analysts speculated on the potential for a rate rise.

ECB president Jean-Claude Trichet will meet with policy makers today, with further information on the economy and inflation expected.

While a rate rise is not expected today, signs for movement in December are predicted when President Trichet makes the central bank's monetary policy statement.

However, some analysts such as Calyon currency strategist Daragh Maher say that the rate rise may not be as imminent as some think.

Noting the frailties of the German economy - with prolonged uncertainty over the composition of the coalition cabinet and policy direction exacerbating the issue - and also unemployment, Mr Maher was more cautious on the prospects of a rate rise.

"It's not likely we're suddenly off to the races. Unemployment is still high and German retail sales were soft. There's not a broad-based recovery as yet," he told Marketwatch.