The euro hit a new 20-month high of $1.3282 against the dollar today for an eighth straight day, within a few cents of its record low of $1.3667 hit in December 2004.
The dollar has been under pressure as worries about the US economy fuel predictions of a Fed rate cut, at the same time as rising confidence in the strength of eurozone growth increases expectations the European Central Bank will keep raising rates.
The euro notched up another record high against the yen, as Japanese data showed a rise in core consumer prices unexpectedly slowed in October to just 0.1 per cent from a year ago, raising doubts about how soon the Bank of Japan can lift interest rates.
The euro jumped as high as 153.59 yen on electronic trading platform EBS, a new life high.
The euro would have to climb some distance before the European Central Bank grew nervous about its impact on exports, the news agency Market News International quoted central banking sources as saying.
One source was reported to have told Market News the ECB threshold is as high as $1.55. Additionally, it said that the ECB Governing Council has not yet reached a consensus on whether to continue raising interest rates after its expected December 7th move.
This could lead to a pause until March or even longer, according to Market News, citing well-informed central bank sources. The dollar extended losses on the report, and the euro was last up 0.2 per cent on the day at $1.3271.
"A $1.30 parity is not worrisome and does not substantially affect exports," it quoted one senior Eurosystem source as saying of the euro's recent ascent. "In my view, the eurozone economy can sustain an even higher parity, up to $1.40-$1.45. The threshold of the ECB is $1.50-$1.55. But these levels are far from reachable."
Another central banking source said: "It's not an issue yet." A third central banker told Market News the move has been "quite substantial".