The euro lost ground yesterday following comments from the Bundesbank president-designate, Mr Ernest Welteke, that he did not want to see the currency too strong. The euro traded in a range from $1.0610 to $1.0680 yesterday, closing at $1.0628. On Monday it had topped $1.0724, a two-month high. It also remained broadly stable against sterling, closing at 66.88p from 66.95p a day earlier. The pound closed at 84.92p from 85.01p on Monday.

According to Mr Jim Power, chief economist at Bank of Ireland, the currency was hit by a combination of profit-taking and nervousness following comments by Mr Welteke, who said he would prefer if the currency did not become too strong, fearing this would nip growth in the bud.

"The currency has paused for breath after a couple of very strong days," Mr Power said. He expected this trend to continue.

Indications coming from Germany also remain very positive. Industrial production was revised up from -0.2 to +0.1, underlining the belief that the economy is on the turn.

At the same time in the US, consumer confidence has fallen back very slightly from 139 to 135.6. But that represents a decline from very high levels and does not mean the consumer has put away his wallet, Mr Power added.

Acting EU tax commissioner Mr Mario Monti said yesterday that the EU's voting rules for tax matters is on the agenda of the next EU treaty talks, set to start in December. "It's already on the short list . . . It will be dealt with in the next inter-governmental conference," Mr Monti told the European Parliament's economic and monetary affairs committee.

Mr Monti said he would be in favour of introducing a double voting system for tax proposals, scrapping unanimous voting for less controversial subjects, but admitted some EU states would find even such a limited step difficult to take.