The euro rose on Thursday versus the US dollar, after fresh concern that the US economic recovery may be slowing.

Investors headed for the euro, which even rose against the Japanese yen; the single currency managed its strongest level in over two months against the dollar.

On Friday, a report is due to be released which will, it is believed, contain information proving a slowdown in the recovery, as gross domestic product slows.

Another factor which is providing new demand for the euro is that of the bank stress tests.  Last Friday, the results of tests on 91 EU banks showed that only seven needed to raise capital. 

By half past 8 in London this morning, the euro had risen 0.3 per cent to $1.3029 before growing higher to $1.306.  Versus the yen it climbed 0.1 per cent to 113.78.

According to currency indices at the Bloomberg news network the euro has this month risen 2.8 per cent against a currency basket.