Euro Hits New High Against U.S. Dollar

Tuesday July 10, 11:38 am ET
By Matt Moore, AP Business Writer
Euro Soars to New High Above $1.37 Amid Worries About U.S. Economy

FRANKFURT, Germany (AP) -- The euro soared to an all-time high against the U.S. dollar on Tuesday, topping the $1.37 mark as key U.S. retailers and homebuilders lowered their growth forecasts, causing more concern about the American economy.

The British pound, which has been trading around 26-year highs against the dollar, briefly touched $2.0273 after reports said that gains in British consumer prices are above the Bank of England's target in the past year, but that inflation was dropping back sharply.

A higher euro makes goods from the 13-nation currency zone more expensive for customers abroad, or cuts into manufacturers' profits if they try to keep the U.S. dollar price of products constant.

http://biz.yahoo.com/ap/070710/dollar.html?.v=3

-Jim