Speculation that the European Central Bank (ECB) is to raise the base rate next month has boosted the fortunes of the euro.

At one point in Thursday trading, the euro was at a multi-week high of 1.3551 against the dollar.

However, in general the European single currency traded steadily between 1.3463 and 1.3541.

Earlier this week, the ECB said its monetary policy stance "had not changed", referring to a previous statement from ECB head Jean-Claude Trichet.

In a speech earlier this month, Mr Trichet called for "strong vigilance" on inflation, which has been interpreted by analysts as a hint that interest rates will be going up.

"As this phrase has been used to signal every rate hike in the recent cycle, this supports our view that the ECB is likely to make good its promise for a September hike," Capital Economics analyst Jennifer McKeown told AFX News.