[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Friday, 23 May, 2003, 12:06 GMT 13:06 UK
Euro exceeds its launch value
Euro
The euro has punched through its launch value against the dollar and is soaring toward an all-time high.

By 1200 GMT the European single currency was worth $1.1789, up more than a US cent against the dollar.

That value was easily in excess of the $1.1747 rate at which the euro closed on its launch day four years ago.

And it puts the currency within a whisker of its all-time high, achieved during that first day's trading.

US deficit

The euro has been steadily gaining ground against the US dollar since March last year.

But it has dramatically picked up pace in recent months and last week briefly touched its launch value, before falling back.

America's ballooning current account deficit and sluggish economy have created the conditions for a weakening currency.

At the same time, a strong dollar is not thought to be a top priority for new US Treasury Secretary John Snow.

Momentum

Shahab Jalinoos, currency strategist at UBS Warburg, said: "It's natural at this point for the market to try and test the all-time high in euro/dollar.

"We're seeing all-time highs in euro/yen almost daily, so technically the momentum is there for euro/dollar to keep going up as well."

The euro hit fresh record highs against the yen, and its highest since August 2001 against the Swiss franc.




WATCH AND LISTEN
The BBC's Hywel Jones
"The strong euro is beginning to bite"



SEE ALSO:
Euro regains launch value
19 May 03  |  Business
G8 play down dollar's decline
18 May 03  |  Business
US backs off from 'strong dollar'
12 May 03  |  Business
Euro hits fresh highs
09 May 03  |  Business
Pound and dollar hit new euro lows
08 May 03  |  Business
European rates on hold
08 May 03  |  Business
Bank leaves rates on hold
08 May 03  |  Business


RELATED INTERNET LINKS:
The BBC is not responsible for the content of external internet sites


PRODUCTS AND SERVICES

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia
UK | Business | Entertainment | Science/Nature | Technology | Health
Have Your Say | In Pictures | Week at a Glance | Country Profiles | In Depth | Programmes
Americas Africa Europe Middle East South Asia Asia Pacific