Thursday April 17, 11:51 AM
Euro hits record high of 1.5984 dollars
LONDON (AFP) - The euro hit an all-time record high of 1.5984 dollars on Thursday as the European single currency continued to win support from news of record-high inflation in the eurozone, traders said.
That beat the previous high point of 1.5979 that was set on Wednesday.
The euro has struck a series of record highs above 1.59 dollars since official data showed eurozone inflation reached an annual rate of 3.6 percent in March -- the highest since the launch of the single currency in 1999.
Analysts said the inflation data was likely to mean the European Central Bank would hold borrowing costs for the foreseeable future.
The bank (TBHS - news) 's benchmark rate, 4.00 percent, is already substantially higher than that of the US Federal Resereve, which stands at 2.25 percent.
The higher interest rate offered in the eurozone -- and the likelihood that it will not change -- makes the euro more attractive than the dollar, analysts said.
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