The euro surged above $1.42 for the first time in its history this afternoon as the prospect of further cuts in US interest rates continued to drive the US currency lower.
The euro had climbed towards the $1.42 mark on Thursday after more weak US housing figures. Late on Friday evening the euro was worth $1.4239.
The data showed that sales of new US homes plunged to their lowest level in seven years in August.
Separate government figures also revised down US economic growth for the second quarter from 4% to 3.8%.
The price of gold surged to the highest level since January 1980 today as the precious metal was boosted by the sliding US dollar, making it cheaper for buyers in other currencies.
On the London Bullion Market, gold prices leapt as high as $739.90 per ounce today. It has risen about 15% so far this year.
Analysts say that the commodity is well placed to rally further, possibly returning to its all-time nominal high of $850 an ounce reached in January 1980.
