The euro fell below $0.95 yesterday as the fortnightly meeting of the European Central Bank's Governing Council left interest rates on hold at 4.25 per cent. The ECB president, Mr Wim Duisenberg, indicated this week that this month's rate rise of half a per cent will be the last for some months.

The euro's sluggish performance on the foreign exchange markets suggests, however, that Mr Duisenberg may have been too optimistic in his assessment that the currency has turned the corner after its sharp decline against the dollar and sterling.