The euro today hit the $1.35 mark for the first time since its launch on foreign exchange markets in 1999, reaching a record high level of $1.3502 in European trading.
The single European currency smashed a previous peak of $1.3469 set on December 7 after weaker than expected US consumer spending figures this afternoon.
Widespread concern about the US's ballooning current account and budget deficits has been boosting the euro in recent weeks.
Meanwhile, French Finance Minister Herve Gaymard said today that the fall of the dollar could become 'catastrophic' in world terms. Gaymard said the US 'absolutely' had to understand at a G7 meeting of finance ministers from leading industrialised countries in February that 'coordinated' international management was needed.
An upward revision to US gross domestic product growth in the third quarter has not been enough to turn the tide against the US dollar. Official figures published yesterday showed GDP up 4% on an annual rate compared with the 3.9% previously recorded.
