Euro hits record high 1.4166 dollars

Standing left to right – Mr. Dinesh Jebamani (Chief Manager Liability Product Management and New Age Media – Seylan Bank), Mr.Sudesh Peiris (Senior Manager – Digital Banking Channels – Seylan Bank), Ms. S.Senevirathne (Representative of the Revenue Department – Western Province), Mr. Tilan Wijeyesekera (Deputy General Manager – Retail Banking – Seylan Bank) and Mr. Malik Wickremanayaka (Deputy General Manager – Operations – Seylan Bank)

LONDON, Sept 27, 2007 (AFP) – The euro set another record high against the dollar on Thursday as dealers waited nervously for the latest round of data on the United States economy.

The European single currency hit 1.4166 dollars, beating its previous record of 1.4162 that was set on Wednesday.

Dealers said the foreign exchange market was jittery ahead of final US second-quarter gross domestic product (GDP) figures and new-home sales due out later Thursday amid speculation about more US interest rate cuts.

In recent days, the dollar hit a series of historic lows against the euro as dealers tracked the outlook for the shaky American economy after the US Federal Reserve slashed borrowing costs to 4.75 percent last week.

“The dollar is unlikely to get a breather today,” said Commerzbank analyst Gavin Friend on Thursday.

“A moderate downward revision of the Q2 US GDP and particularly falling new homes sales will generate further selling pressure for the dollar, since in the current environment investors are reacting sensitively to negative US economic data.

“Even though markets are to a certain extent preempting the effects of the (subprime) financial crisi