Euro hits record high against dollar on US economy worries

NEW YORK, July 11, 2007 (AFP) – The euro surged to a record high against the dollar Wednesday on growing concerns about risky loans in the US property market and a European Central Bank hint of an interest rate hike. In late New York trade, the dollar stood at 1.2062 Swiss francs, up from 1.2019 Tuesday.
The pound traded at 2.0321 dollars, up from 2.0276.

The euro earlier hit an all-time peak of 1.3787 dollars in Asia trading before easing slightly.

In New York, the single European currency was traded at 1.3741 around 2100 GMT, down from 1.3745 dollars late Tuesday.

The dollar also weakened against the pound, which rose as high as 2.0352 dollars, a level last seen in 1981, buoyed by the outlook for higher borrowing costs in the coming months, analysts said.

However, the dollar firmed to 122.45 yen from 121.76 on Tuesday.

Late Tuesday, ECB executive board member Jurgen Stark told reporters in Frankfurt that the euro’s rise underscored the health of the eurozone economy and should have only a limited impact on eurozone exports.

The strength of the European single currency “simply reflects economic recovery in Europe,” said Stark, who is also head of the German central bank, the Bundesbank