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Last Updated: Thursday, 27 September 2007, 13:52 GMT 14:52 UK
Euro enjoys another dollar high
Money changer exchanges euros for dollars
The high value of the euro is not good news for European exporters
The euro has climbed to yet another all-time high against the dollar, as dealers anticipated the publication of weak US macroeconomic data.

In early Thursday trading the euro reached $1.4189 , beating the $1.4162 record set on Wednesday morning.

Figures on new US home sales are due later, with analysts expecting more gloomy economic news.

If the figures are weak, it will raise expectations that the Federal Reserve will cut interest rates still further.

Export concerns

Already this week, figures have indicated that US consumer confidence has fallen to a near two-year low, while house prices have seen the sharpest drop in 16 years.

The Fed cut US interest rates to 4.75% from 5.25% last week - the first US rate cut in four years - in a move aimed at restoring confidence in both the housing and financial markets.

The high value of the euro has caused concern among European exporters, as it makes their products more expensive in the US.

Planemaker Airbus has already warned that jobs could be affected if the euro remains so strong.


SEE ALSO
Euro sets yet another dollar high
24 Sep 07 |  Business
Jobs fears as euro gets stronger
21 Sep 07 |  Business
Dollar hits new low against euro
20 Sep 07 |  Business
Airbus costs knock EADS profits
26 Jul 07 |  Business
Yuan hits new high versus dollar
25 Jul 07 |  Business
European economy 'sound' - Trichet
11 Sep 07 |  Business




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