LONDON (AFP) — The dollar rose against the euro and the yen on Friday amid a Group of Eight finance meeting in Japan, with analysts keen to see whether ministers will back US efforts to strengthen the dollar.
The euro, meanwhile, was pressured by growing concerns that Irish voters could reject a crucial European Union (EU) referendum on the Lisbon Treaty.
The European single currency fell to 1.5395 dollars in early London trading from 1.5435 in New York late on Thursday.
Against the Japanese currency, the dollar advanced to 108.09 yen from 107.91.
The Czech koruna hit a new record high of 24.13 koruna/euro on Friday morning as it continued its recent strengthening against the single currency.
In the western Japanese city of Osaka on Friday, finance ministers from the world's leading industrialised powers began talks to seek a way to stem soaring food and oil prices that are endangering world economic growth.
Dealers will be looking for any signs of increased concern about the weak US dollar, particularly in Washington.
"We will get some clues as to whether the Fed's new found attention on the weakness of the US dollar is shared by other officials at the G8 meeting which begins today in Osaka," said Calyon analyst Mitul Kotecha.
He added: "Markets will be sensitive to any sign that G8 officials are sanctioning intervention to strengthen the dollar.
"We believe that there could be stronger language on FX (foreign exchange) in the communique but it is likely to stop short of indicating that intervention is likely, which could still be enough to boost the dollar."
Japanese officials have said currencies are unlikely to be included in the G8 joint statement because central bank chiefs will be absent, but foreign exchange was still expected to be a topic of discussion.
"For the prospects on higher US interest rates, (market players) are watching if the authorities will make it clearer that they want to curb inflation," said analyst Osamu Takashima at Bank of Tokyo-Mitsubishi UFJ.
The meeting on Friday and Saturday in Osaka gathers the top finance officials from Britain, Canada, France, Germany, Italy, Japan, Russia and the United States.
In Ireland, meanwhile, vote-counting began Friday in a knife-edge Irish European Union (EU) referendum, which could plunge the 27-nation bloc into a new crisis if its new treaty is rejected, state television said.
Ireland's roughly three million voters effectively hold the future direction of the entire EU -- population nearly 500 million -- in their hands because the Lisbon Treaty needs approval by all 27 EU member states.
Results from the crunch poll are expected later Friday.
The foreign exchange market will also digest US consumer price inflation data amid growing speculation about a possible rate hike from the US Federal Reserve.
The Bank of Japan said on Friday that it was holding its benchmark interest rate at 0.50 percent in line with market expectations.
In London early on Friday, the euro changed hands at 1.5395 dollars against 1.5435 late on Thursday, at 166.41 yen (166.57), 0.7905 pounds (0.7929) and 1.6105 Swiss francs (1.6081).
The dollar stood at 108.09 yen (107.91) and 1.0461 Swiss francs (1.0416).
The pound was at 1.9472 dollars (1.9465).
On the London Bullion Market, the price of gold firmed to 869.28 dollars per ounce from 862.25 dollars late on Thursday.
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