The euro moved nearer a new all-time high against the dollar today as investors waited anxiously for an expected US interest rate cut next week amid growing fears of a US recession.
The European single currency rose to $1.3821 - the highest point since August 8. It later stood at $1.3819.
In July, the euro jumped to $1.3852 - the highest level since its creation in 1999 owing to the high level of European interest rates and concerns over a weaker US economy.
The US Federal Reserve's chairman, Ben Bernanke, has already indicated that the central bank is ready to cut rates to protect the national economy from the ill effects of a global credit crunch.
Traders will be closely following Mr Bernanke's speech to the German central bank this afternoon for further clues on future US monetary policy.
