Euro climbs after hitting two week low The euro regained some lost ground on Friday after suffering heavy falls the previous day when Mario Draghi, president of the European Central Bank, surprised markets by commenting on the recent strength of the single currency. The euro traded back above $1.34 against the US dollar after hitting $1.3369 on Thursday - its weakest level in two weeks - following Mr Draghi's comments. Currency analysts said the remarks might not be sufficient to stem the upward pace of the euro, however, which has risen as investors have returned to the eurozone this year. "The ECB policy mix is continuing to generate a favourable environment for asset markets, which could continue to attract investor inflows," said analysts at Morgan Stanley. The euro gained 0.2 per cent against the dollar to $1.3421. Japan's yen strengthened against other major currencies after reported comments from Taro Aso, Japan's finance minister, who warned that the yen had weakened more than intended. Some analysts interpreted the comments as a political move ahead of the G20 meeting next week, where the pace of the yen's sell-off could be under discussion. The Aso comments could be related to the G20 meeting of finance ministers and central bank governors next week. Japan may be trying to avoid being singled out as a currency manipulator," said Valentin Marinov, analyst at Citigroup. The dollar dipped more than 1 per cent to Y92.17 but later recovered and was trading at Y92.84, a 0.8 per cent dip on the day. The euro was 0.7 per cent lower at Y124.56. The pound continued to build on gains against the dollar and the euro following testimony from Mark Carney, the incoming governor of the Bank of England, on Thursday. Mr Carney sounded more hawkish than had been expected and more cautious on the prospect of introducing nominal GDP targeting in the UK, which is viewed as negative for the currency. Sterling rose 0.2 per cent against the dollar to $1.5748 and was 0.1 per cent higher against the euro at £0.8511. The Australian dollar was higher after better-than-expected trade figures out of China, a close trading partner with Australia. The figures helped the Aussie dollar to recover from losses earlier in the week, after the Reserve Bank of Australia held interest rates but signalled it was still considering future cuts to help the economy. The Australian dollar rose 0.3 per cent against the US currency to $1.0325 but fell against the Japanese currency as yen strength dominated trading, losing 0.5 per cent to Y95.841.