Euro trades close to records against dollar

The euro traded a touch below its recent lifetime records against the dollar and the yen in the last session of the year today…

The euro traded a touch below its recent lifetime records against the dollar and the yen in the last session of the year today as investors bet it will continue to benefit from a weak dollar in 2005.

Persistent imbalances in the US economy will likely continue to weigh on the dollar next year after pushing up the euro more than eight per cent in 2004 to record highs versus the US currency.

And expectations of further dollar weakness have led the euro to notch up new record highs for the last six trading sessions, peaking at $1.3667 yesterday.

This morning, it stood at $1.3640 while trading volumes dried up on New Year's Eve. Japanese markets were fully closed, and markets were expected to close early in parts of Europe and the United States.

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Against the yen, the euro was half a per cent weaker at 139.93 yen. Earlier this week it set a lifetime peak around 141.60 yen.

The dollar was also 0.5 per cent weaker versus the yen at 102.52.

No major economic data was scheduled for release today.