The euro surged to its highest level since December 2004 against the US dollar this morning after a stronger than expected business survey in Germany.
The euro reached $1.3659 in European trading - not far off its record peak of $1.3666 hit on December 30 2004. It later moved back slightly this evening to €1.3641.
The dollar is flirting with an all-time low against the euro as investors are attracted by the prospect of higher euro zone interest rates, compared with the increased chances of lower rates in the US.
Resilient economic growth in the euro zone is also helping the single European currency.
