The euro has surged to another record high against the US dollar, striking $1.3794 as the European currency was boosted by US economic concerns and interest rate differences.
The euro later pulled back slightly late this evening to stand at $1.3786. Foreign exchange market concerns about the wider impact of mortgage problems in the US have weighed heavily on the dollar this week.
This morning's new high point beat the previous record of $1.3787 which was struck on Wednesday.
Dealers remain wary about prospects for the US economy in light of the current problems in sub-prime mortgages taken out by higher-risk borrowers. The dollar has also been weakened by the prospect of higher interest rates in the euro zone and Britain, whereas American borrowing costs have remained on hold for the past year.
