Euro hits record high against US dollar

Euro hits record high against US dollar
Photo: DPA
Europe’s single currency the euro cracked through the $1.60 level for the first time ever on Tuesday, raising fears for Germany’s export-led economy.

The euro pierced through the important psychological barrier in afternoon trading in Frankfurt to briefly reach an all-time record high against the greenback of $1.6002 before dipping back $1.5970.

“The euro was buoyed today by disappointing economic data from the American real estate sector and more than anything from comments by top officials from the ECB,” currency expert Rainer Satoris from HSBC Trinkaus said.

In what foreign exchange traders called nervous market conditions, the price for a barrel of oil also reached a new high of $118.

The rising euro partially shields the euro-zone economy from rising oil prices since energy products are denominated in US dollars, however, it also makes the currency area’s exports more expensive. German exporters, which drive the world’s third-largest economy, have begun expressing growing concerns that the euro’s strength could hurt their ability to sell abroad.