EURO TOPS $ 1.55 FOR THE FIRST TIME

Euro tops $1.55 for first time
The
euro has set a new record high against the US dollar, passing $1.55 for
the first time.Scepticism about whether the Federal Reserve’s plans to
provide liquidity to the banking system will work was one factor
weakening the dollar.Speculation that the United Arab Emirates is about
to abandon its dollar peg also weakened the US currency.

The new
record was set at $1.5503 before the euro fell back slightly to trade
at $1.5489.Strong economic data in the euro zone made it less likely
that there will be an interest rate cut from the European Central Bank,
while the Federal Reserve is widely expected to cut rates at its next
meeting.ndustrial production in the 15 states that use the euro rose
unexpectedly fast in January, growing 0.9% from December and 3.8% from
January 2007, according to officials from Eurostat.