The euro broke through its January 1999 launch level against the dollar for the first time on a sudden round of euro buying that triggered further automatic buy orders.
The euro leapt half a cent in seconds, pushing through its $1.1747 launch level to $1.1783, just a cent below its record high around $1.1880.
"A lot of stops were taken out above $1.1750," said Mr Lee Ferridge, head of global currency strategy at Rabobank.
"The trend is very very strong - you don't want to stand in the way of it at the moment," he added.
The move marks a psychological milestone for the currency, which struggled to foster market confidence in its infancy and lost a third of its value against the dollar in its first two years.
