Euro Trades Near Record High Versus Dollar

The euro traded near a record high against the dollar on speculation inflation in the common- currency region is too strong for the European Central Bank to cut interest rates.

French inflation accelerated in March to the fastest pace in at least 12 years, a government report showed today. The euro stayed higher against the dollar even as a private report showed investor confidence in Germany unexpectedly fell this month. The pound slid to an all-time low versus the euro amid evidence the U.K. housing slump is the worst since 1978.

The euro traded at $1.5844 per dollar as of 6:24 a.m. in New York, from $1.5832 late yesterday. It rose to $1.5913 on April 10, the highest level since the European currency's debut in 1999. It was at 159.95 yen today, from 160.04 yen. The dollar traded at 100.95 yen, from 101.10.

Consumer prices in France rose by an annual 3.5 percent, up from 3.2 percent in February, the Paris-based Insee national statistics bureau said today, the fastest pace since 1996. The ZEW Center for European Economic Research said its index of investor and analyst expectations fell to minus 40.7 from minus 32 in March. The gauge reached a 15-year low in January.

Euro Trades Near Record High Versus Dollar, Bloomberg
4/15/2008 6:58:29 AM