Euro hits record high 1.3792 dollars
LONDON (AFP) - The euro surged to another record high on Thursday, striking 1.3792 dollars as the European single currency was boosted by US economic concerns and interest rate differentials, dealers said.
The euro later pulled back slightly to stand at 1.3778 dollars.
Foreign exchange market concerns about the wider impact of mortgage problems in the United States have weighed heavily on the dollar this week.
Thursday's new historic high point beat the previous record high of 1.3787 which was struck on Wednesday.
"Amid US housing/subprime woes, which have pushed up risk aversion, the dollar continues to trade on the defensive," said Commerzbank analyst Gavin Friend in London.
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 eurozone and Britain, whereas American borrowing costs have remained on hold for the past year.
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