FOREX-Euro/dlr hits 1-mth high, boosted by risk demand

LONDON, May 5 (Reuters) - The euro hit a one-month high against the dollar on Tuesday as higher global shares added to the view that the worst of the economic downturn may have passed, spurring more demand for currencies perceived to be higher risk.
A 3 percent climb in UK share markets .FTSE helped to further the ongoing improvement in risk demand, pushing sterling to a four-month high against the dollar.
The euro rose as high as $1.3439 on electronic trading platform EBS, its highest since early April, although anticipated results of U.S. bank stress tests later this week capped a climb higher, traders said.
Analysts said data this week showing improving manufacturing in Europe, China and India, and an unexpected rise in U.S. existing homes sales added to the view that the global economy may have past the worst after months of intense weakness. Continued...