The euro jumped to a new record high against the dollar this morning, hitting $1.3158 in European trading.

It was the second straight day of record highs for the euro, which has been boosted by concerns about the large US budget and current account deficits.

The European single currency spiked to the new all-time peak before easing slightly to $1.3123. It had stood at $1.3084 last night.

The euro breached the $1.31 threshold for the first time yesterday and peaked at $1.3106.