Euro climbs above $1.25

Euro climbs above $1.25

LONDON: The euro climbed above US$1.25 for the first time ever on Monday, the latest in a series of all-time highs for the single currency against the embattled U.S. unit.

The euro hit $1.25 just before 12:30 GMT (05:30 Jakarta time), reaching a peak of $1.2510 before slipping back very slightly.

The European unit, launched in January 1999, had exceeded its previous peak of 1.2469 -- set only on Wednesday -- just before 0900 GMT, and continued climbing from there.

The euro has increased by around 20 percent against the dollar during 2003, with the U.S. currency hit by concerns over the swelling American current account and budget deficits and the low level of U.S. interest rates.

Thin post-Christmas trade was also increasing market volatility during Monday, analysts said. -- AFP