Euro hits another record high against U.S. dollar

The euro hit another record high against the U.S. dollar on Monday after a weekend meeting of the Group of Seven finance ministers ended without an expression of concern over the European currency's strength.

Photo: Euro hits another record high against U.S. dollar

The euro rose as high as US$1.4348 in Asian trading, breaking a previous record of US$1.4319 set on Friday. It had settled back to US$1.4326 by early morning in Europe.

The dollar has been under pressure over concerns about the health of the U.S. economy, which have encouraged speculation that the Federal Reserve will soon cut interest rates again.

The European Central Bank, in contrast, has left open the option of raising its own rates.

Although lower interest rates can jump-start the economy, they can weaken a currency as investors transfer funds to countries where their deposits and fixed-income investments bring higher returns.

The G-7's lack of public concern over the euro's rise is likely to result "in a continuing trend of a rising euro while the dollar may face some selling pressure," said Nikko Citigroup currency strategist Masafumi Yamamoto.