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The euro hit a new high against the US dollar today, hitting $1.3838 before it fell back to $1.3821.
The British pound was also on the up, reaching a 26- year high of $2.0568.
With the US subprime lending market crisis still looming large, the US dollar remained under serious pressure from the euro.
The sharp rises in the value of the euro and the British pound against the dollar is adding to fears in the euro-zone that European exporters will be hit hard as they bid to compete in international markets.
However, the ECB insisted today that the strength of the euro has not had any negative effects on EU exports.
European Central Bank Executive Board Member told German daily Frankfurter Allgemeine Zeitung:
"Euro-zone exporters have not suffered from a strong euro to this point. So far, we have seen a rather gradual appreciation of the euro. We would have a problematic situation should we see abrupt movements."
Meanwhile, the dollar is not expected to make any significant recovery early this week.
However, Wednesday’s release of the Federal Reserve’s Beige Book economic report and home sales data in the US may offer some respite for the struggling currency, but that is far from certain.
15:14
Posted on Jul-18-2007
