Euro hits 11-week high against dollar The euro continued to rise on Friday amid the improved risk appetite in markets, reaching its highest level against the dollar in 11 weeks. The single currency rose 0.4 per cent to a session high of $1.3424 in early afternoon trading in London, gaining nearly 2 per cent over the course of the week against the dollar. The euro also reached its strongest level against the yen since the start of November, rising more than 1 per cent to Y108.15. It was flat against the pound at £0.8492. Sterling shrugged off figures confirming a 0.2 per cent quarterly decline in the UK economy in the fourth quarter of last year and continued to claw back losses made earlier in the week. Markets had sold off the pound on Wednesday following minutes published by the Bank of England's Monetary Policy Committee indicating mixed views on the need for further quantitative easing. The pound rose for the second day in a row, gaining 0.4 per cent to a high of $1.5818 against the dollar, though it remained slightly weaker over the course of the week, falling 0.3 per cent overall. The dollar reached a fresh seven-month high against the yen, which continued to weaken significantly against other major currencies over the course of the week following the Bank of Japan's step to buy more government bonds last week, adding liquidity to the system. The dollar hit Y80.64, a rise of 0.7 per cent. The pound rose to pre-intervention levels against the yen, gaining 1 per cent to a high of Y127.41, its strongest level against the Japanese currency since the start of August. The Australian dollar recovered from earlier daily lows after Fitch, the rating agency, downgraded three of the country's banks. The Australian dollar touched $1.0699 after the news but was later up 0.1 per cent against the US dollar on the day at $1.0726. The Swiss franc continued to edge higher against the euro over the course of the week, reaching SFr1.2039 against the single currency, a three-week high.