The euro has reached a fresh record high, breaking through key 1.41 levels in the early part of the European session. The dollar touched another record low against the euro as investors continued to dump the US currency after the aggressive rate cut by the Federal Reserve earlier this week.
The dollar’s slump comes on the back of increasing worries over the US economy in the wake of its mortgage crisis. Asian exporters were hit by a weak dollar, which tends to hurt their overseas earnings and erode their export competitiveness. Asian stocks stalled after scaling an all-time high on Friday as worries about US inflation grew, fuelled by the dollar hitting a record low against the euro and oil climbing to new peaks overnight.