The euro hit the $1.40 mark, its highest point for more than four months, this afternoon as the US dollar was weakened by concerns about high US debt.
The euro was trading at $1.4011 at 7.20pm - over a cent higher than its close on Thursday.
The dollar is being hit by fears about a potential downgrade of the US government credit rating.
While there was no specific news about the US rating, yesterday's warning by Standard & Poor's of a possible downgrade of Britain's rating prompted fears the US might be next, dealers said.
Moody's said yesterday it was comfortable with its triple-A sovereign rating on the US, but the rating was not guaranteed forever.
