The euro has jumped to another record high of $1.3852 in European trading this afternoon, though it later fell back to around $1.3815.
Traders said there was no specific trigger for the move. They added that the euro's push higher was a continuation of the pressures hurting the dollar over the past few weeks, including higher euro zone interest rates and US housing market concerns.
The European Central Bank is forecast to lift euro zone interest rates costs in the coming months from the current level of 4%.
In contrast, the US Federal Reserve has held US interest rates at 5.25% for the past year - meaning that currency investors can reap higher returns from the euro rather than the struggling dollar.
