The euro climbed close to its record high against the dollar today.
The dollar was pressured by doubts the Federal Reserve would hike US interest rates again in the near future, amid jitters about international security after a series of failed car bombings in Britain.
The euro climbed during the day to $1.3638, close to the record high of $1.3682 reached on April 27.
It ended the day at $1.3614, however, down from $1.3623 in New York late on Monday.
Meaning, the soaring strength of the euro in recent years has had only a 'modest' impact on exporters and their profits, according to the European Commission.
Instead, competitive wages and worker efficiency play a greater role in how the 13-nation euro zone performs in international trade, the European Union's executive arm concluded in its Quarterly Report on the bloc.
The euro's strength has become a hot political topic in recent months with French President Nicholas Sarkozy blaming it for the woes of European defence contractor EADS.
However, the Commission's research found that fluctuations in exchange rates 'have a relatively modest impact on the euro area's export performance.'
It said that 'between 2001-06, exchange rate fluctuations curbed annual growth in euro-area exports by 0.6%, which is small relative to the 5% average annual growth in the exports over the period.'
The euro had risen to an all-time high against the dollar in April of $1.3682 and last month reached a peak against the Japanese currency of 166.67 yen.
Despite concerns about the ascent of the single currency, the Commission said a strong euro had also boosted consumer purchasing power by making imported goods cheaper.
