The dollar and the euro gave little away to each other yesterday as both markets indicated interest rate hikes are on the way.

This morning the dollar stood at 1.7552 against the pound and at 1.4539 to the euro.

The Richmond Federal Reserve president Jeffrey Lacker said yesterday that there would be at least one more interest rate rise, prompting the dollar to improve a little.

The euro had received an initial boost when ECB executive board member Lorenzo Bini Smaghi told Dow Jones that eurozone interest rates are currently too low, given the potential of economic growth.

However, while Mr Bini Smaghi apparently advocated further rate hikes, he claimed shortly afterwards he had not made the comments, which caused the euro to dip back down.

The release of US economic data yesterday, which showed rising core consumer prices in December and solid business figures, failed to give the market the expected directional push.