The euro surged above $1.41 Thursday for the first time since January amid rising concerns about quantitative easing measures taken by the U.S. Federal Reserve.
Further easing by the Fed will strain the dollar as investors are not interested in buying a currency with depreciating value. The dollar slumped to a record low in 15 years against the Japanese yen as the eastern currency saw its biggest rally in recent years.
The euro, which is used in 16 countries of Europe as their sole currency, hit a new high of $1.4103 in morning European trading although it later dropped to $1.4084. The new rate is still higher than the $1.3965 it traded in New York late Wednesday.
The dollar saw its fortunes dropping in front of yen as it dipped to 81.19 yen from its yesterday's rate of 81.77 yen. The British pound also saw a surge as it rose to $1.6109 from yesterday's trade rate of $1.5970.
The Fed will release the minutes of its September meeting this week, which many expect to cause a further dent in the dollar's value as there are indications that a new bond-buying program may start from next month. Interest rates will also be lowered as a consequence and this will seriously undermine dollar's worth.
The recent announcement by Singapore's central bank that it will continue a modest yet gradual appreciation of the Singapore dollar did not help the greenback either. The U.S. currency is expected to see further slumps in the coming days, which may hit new records.
