The 13-nation euro hit a new record high against the U.S. dollar on Thursday in thin holiday trading, according to AP. The euro spiked to US$1.4873 before falling back slightly to US$1.4833 in afternoon European trading. Its previous high of U$1.4856 was hit Wednesday, before it settled at US$1.4848 in late New York trading. The dollar was down slightly against the yen, buying 108.62 yen from 108.68 yen in late New York trading. The British pound, meanwhile, fell slightly to US$2.0634 from US$2.0644 the night before. The U.S. Thanksgiving holiday kept many players on the sidelines, while Japanese financial markets will be closed Friday for the Labor Thanksgiving Day holiday. While the thin holiday trade could invite sudden, sharp moves, traders expected the market to be largely subdued for the rest of the day. The euro, the pound and other currencies have been climbing steadily against the dollar since August amid fears for the health of the U.S. economy, stoked by the subprime credit crisis. The dollar has been further weakened by U.S. interest-rate cuts _ which can be used to jump-start an economy, but can also weaken a currency as investors transfer funds to countries where they can earn higher returns. The Federal Reserve has already cut rates twice.
