LONDON (SHARECAST) - The euro lifted off a seven week low against the dollar on Wednesday as investors mulled weaker than expected US inflation data and ahead of new bailout talks in Ireland. The single currency was also boosted by news that a team of international officials are expected to arrive in the Irish Republic on Thursday for more talks about the country’s debt crisis following a meeting in Brussels Wednesday. The big question is whether Ireland will, albeit reluctantly, accept a bailout for its sovereign debt and struggling banks. While the euro came off recent lows, investors were still reluctant to take new positions until a firm resolution for Ireland is found. There is growing concern that Ireland’s debt problems will lead to a domino effect in an already weakened euro zone. The dollar lost momentum after the US consumer-price index rose 0.2% in October, instead of the 0.3% predicted by analysts. The inflation figures, along with weak housing data, supported the Federal Reserve’s recent decision to pump fresh stimulus into the US economy. The greenback was up a touch against the yen but down against the pound. Sterling was boosted by a surprise fall in the number of people in Britain claiming unemployment benefit in October. The number of Jobseekers’ Allowance claimants fell by 3,700 to 1.4654m, the first drop since July.

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