Suggestions that the interest rate will continue to rise in the US have bolstered the dollar.

Against the euro the dollar stood at 1.1995 and 1.7474 to the pound this morning.

The strength of the dollar - at one point touching a 17-month high against the yen - was largely fuelled by sentiments being aired by the Federal Reserve.

Reverberations from the September 20th Fed meeting minutes, which reiterated the commitment to increasing interest rates, continued to impact on the market.

In the light of the latest interest rate rise the minutes read: "Even after today's action, the federal funds rate would likely be below the level that would be necessary to contain inflationary pressures, and further rate increases probably would be required."

Now traders are awaiting the impact of a Friday report on consumer inflation, with the signs indicating that even tighter control of is needed, again fuelling expectations of sustained interest rate increases.