The dollar fell to a two-month low against the euro this morning amid speculation that the Federal Reserve is set to end its interest rate rises.

This lunchtime the dollar stood at 1.7554 against the pound and at 1.2072 to the euro.

It is expected that interest rates will rise to 4.5 per cent at the end of this month, the 14th straight increase since June 2004, but many experts are predicting that the Fed is unlikely to continue with the rises after that.

Minutes released on Tuesday from the Federal Reserve's meeting on December 13th intimated that rates are approaching their peak, news that saw the euro up a third of a per cent against the dollar at 1.2050 this morning.

Sven Friebe, a currency strategist at Credit Suisse Group, told Bloomberg: "The Fed has signalled it's near the end of the rate cycle, while we expect a few more rate hikes in Europe.''

"This is putting pressure on the dollar and helping the euro,'' he continued.

The ECB lifted its interest rate in December for the first time in five years.