The Euro has risen to an all-time high against the U.S. Dollar after data released on Friday showed a slowdown in the pace of growth of the U.S economy in the first quarter. ''The dollar has been pressurised significantly by softer US growth, concerns over the housing market, and the increased possibility that the Federal Reserve will cut interest rates later this year,'' said Howard Archer at Global Insight.
The Euro's strength is credited with inflation data released from Germany and also robust business confidence. ''The German economy is obviously coping well with the current Euro/U.S Dollar exchange rate,'' said Michael Glos, the German economics minister.''If there were further strong gains it would mean some risks but currently, and this can be seen in the performance of exports, it’s bearable.''
The Euro has also reached record highs against the Japanese Yen after disappointing economic data was released. Despite this, the Yen was able to hold its ground as the Bank of Japan kept its interest rates unchanged at 0.5 percent.
In forex-trading, the Euro hit 1.3682 U.S. Dollars, exceeding past its previous high of 1.3667 U.S. Dollars during 2004. Against the Japanese Yen, it reached 162.91 Yen from a previous high of 162.53 Yen.
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