The euro hit a new record high against the dollar, rising briefly above the 1.55 usd threshold for the first time before dropping back. Analysts said the move was likely due to technical matters, noting an option expiry in New York just moments before.
Matthew Foster-Smith at Thomson's IFR Markets noted the euro/dollar traded to a new all-time high "less than a minute after the 1400 GMT New York option cut".
"The new historic highs are yet be extended with spot initially easing back into the 1.5490's rather than extend the rally deeper into the 1.55's," he added.
At 1417 GMT, the euro was trading around 1.5490 usd, having peaked at 1.5503 shortly after 1400 GMT.
The euro's continued storming run against the dollar reflects the dismal prospects for the US economy, which contrast markedly with those of the euro zone.
While the US Federal Reserve is busy cutting US interest rates to support growth, the European Central Bank is yet to shift from its hawkish stance on inflation.
