Euro claws back losses on IMF reports The euro clawed back its losses from the previous week against the dollar on Wednesday following reports that the International Monetary Fund was set to boost its lending resources, raising hopes that fresh money could be injected into the struggling European sovereign debt markets. The single currency rose to a high of $1.2844 on the report from Bloomberg and was up 0.6 per cent against the dollar in mid-morning trading in London. It later fell back to $1.2791. Currency analysts were expecting risk appetite to be muted ahead of any outcome on Greece's ongoing debt talks with investors, with the threat that the country could default on its debt remaining, which would put downward pressure on the euro. "At this stage, markets would likely view almost any agreement as positive for the euro and risk-sensitive assets," said analysts at Credit Suisse. Major currencies had already been making small gains against the dollar amid a cautious improvement in risk appetite. The pound was higher against the dollar, shrugging off figures showing that UK unemployment had risen to a fresh 17-year high, with 8.4 per cent of the workforce unemployed in November. Sterling rose 0.3 per cent to $1.5378 while the euro rose 0.4 per cent to £0.8338. The Australian dollar rose 0.3 per cent against the US dollar to $1.0403, while the New Zealand dollar rose 0.7 per cent to $0.8059, its strongest level in more than two months. The Hungarian forint rose to its highest level in nearly a month against the euro, reaching Ft304.65, ahead of a speech at the European parliament this afternoon by Viktor Orban, prime minister. The European Union said on Tuesday it had started legal action against the country, arguing that three laws recently passed in Hungary were in violation of EU treaties. The forint reached Ft304.65, rising 0.8 per cent on the day, though it remained at historical lows against the single currency.