The euro has stormed to a record high against the dollar, propelled upwards by expiring holdings in the derivatives market as investors seek to capitalise on bearish sentiment towards the US currency.
The greenback has struggled across the board in recent days as upbeat economic data from the United States has failed to dispel concerns the country needs a weaker currency to reduce its vast current account deficit.
The euro jumped three-quarters of a per cent to $1.1994 in the European midsession today, gathering momentum as it vaulted last week's peak of $1.1978 in a quiet, post-Thanksgiving market.
The dollar's latest lurch lower against the euro comes against a background of persistent concerns over the United States's precarious funding situation and its vulnerability to geopolitical risk.
The dollar's failure to gain on the back of stellar US growth and consumer confidence data earlier this week had emboldened dollar bears, reinforcing the view that robust economic recovery will not solve the United States' structural problems.
The yen also suffered at the hand of the euro, falling to its lowest in over two months as disappointing Japanese industrial production data curtailed optimism on Japan's recovery prospects.