Europe has stepped up attacks on the US over its massive deficits, but has failed to halt the euro's record-breaking rise.
After the 12 euro nations late last night issued a toughly worded statement expressing concern at sharp volatility in currency rates, EU finance ministers made it clear that the onus to balance the world economy lay with the US.
'We were quite unanimous behind saying that the euro group's message is addressed essentially to the American authorities,' Belgian Finance Minister Didier Reynders said as he arrived in Brussels for an EU meeting.
Currency traders, however, shrugged off the EU expressions of concern to push the euro up to a new high of $1.3467 in early London trading, topping a previous record summit of $1.346 on Friday. The euro later fall back to trade at $1.328 this evening.
Dealers said that despite the eurozone statement, which was agreed jointly with the European Central Bank and the EU Commission, intervention in the markets remained a distant possibility for now.
The ECB's last move onto foreign exchange markets was in late 2000, when the Group of Seven industrialised nations joined forces to buy euro and sell dollars as Europe's common currency hit record lows.
US Treasury Secretary John Snow, however, has poured cold water on hopes for renewed intervention, arguing that currency values are best set in 'open and competitive exchange markets'.
