London, Nov 28: The Euro climbed to a new all-time high against the Dollar today as concerns about the large us current account deficit returned to haunt the US unit. The single European currency rose to as high as $ 1.1989 in early European trading from 1.1908 late yesterday.

The surge propelled the Euro past its previous all-time peak of 1.1979 dollars set on November 19.

Analysts said there had been no particular trigger for the move, which came amid still-thin trading volumes after yesterday's thanksgiving day holiday in the United States.

The jump came after the us unit failed to draw strength from a recent flurry of surprisingly strong US economic data, held back by concerns about the large US current account deficit and global trade tensions, analysts said.
Trading was dominated by speculative funds, said BNP Paribas economist Iain Stannard.

Dealers were looking for the dollar to weaken further in the short term because of worries about the huge US current account and budget deficits, he added.
The almost insatiable appetite of us consumers for imports of foreign goods leaves the us economy hugely reliant on foreign investment flows and makes the dollar vulnerable to any signs of a decline in such inflows.

Bureau Report