FRANKFURT, Germany (AP) -- The euro rose to another new record against the dollar on Monday, hitting US$1.4130 as last week's Federal Reserve interest rate cut continued to weigh on the U.S. currency.
The 13-nation rose to US$1.4130 before settling back slightly to US$1.4115 in early morning European trading. That compared with a previous peak of US$1.4119 on Friday, and with the US$1.4083 it bought in New York late that day.
The euro surged through the US$1.40 mark for the first time since its debut in 1999, and then kept going, after the Fed last week cut its key interest rate by a larger-than-expected half percentage point to 4.75 percent.
The central bank was responding to market turbulence in the U.S. and elsewhere in the fallout from the subprime mortgage crisis.
Lower interest rates, used to jump-start the economy, can weaken a currency by giving investors less return on investments denominated in the currency.
In other trading Monday, the British pound rose to US$2.0288 from US$2.0200. The dollar also slid to 115.01 Japanese yen from 115.39 yen.
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