The dollar continued to rise today after positive comments from the Federal Reserve reverberated.

Hitting a new two-year high against the yen and also touching highs against the euro for some time, investors are continuing to buy the dollar in droves.

At present the dollar is 1.7496 against the pound and 1.1827 to the euro.

With Fed chairman Alan Greenspan vowing to incrementally increase the interest rate on the back of encouraging US economic data, the prospects for the dollar appear good.

In contrast to Europe, where uncertainty in Germany over the future of the country's political trajectory is being exacerbated by low borrowing rates, the US currency is surging ahead.

Credit Suisse Group currency strategist Sven Friebe told Bloomberg: "People are still jumping on the band wagon that the dollar's got more strength to go."

The euro's progress has also been checked by confusion over the plans for the base rate, with European Central Bank president Jean-Claude Trichet remaining tight-lipped on the strategy for managing the currency after the ECB held rates at two per cent last week.

In the UK this week, results from a number of major retailers are out, including Marks & Spencer, Cable & Wireless, Associated British Foods and Robert Wiseman Dairies.

Other major firms reporting to the market include Aveva Group, Royal & Sun Alliance and Scottish Power.