The euro broke through the $0.95 barrier for the first time in 17 months today after the US stocks ended at eight-month lows.
Analysts said Wall Street's retreat highlighted the lack of confidence in equities, sending the euro to $0.9491 late in New York yesterday. It climbed to to a high of $0.9506 in trading this morning.
Meanwhile sterling rose to an eight-month high against the dollar on a combination of the dollar's weakness, expectations of a Bank of England interest rate rise in July and anti-euro comments by Mr Rupert Murdoch.
Mr Murdoch's comments, made in yesterday's Financial Times, appeared to reverse the pound's recent weakness based on expectations a timetable for a referendum on euro zone entry would be announced in the coming months.
Analysts said Mr Murdoch's comments served to remind the market of the hurdles still remaining before Britain could enter the euro zone.
The pound was at $1.4741, just off its eight-month high of $1.4753. Against the euro, sterling was at £0.6434 after gaining yesterday following Mr Murdoch's comments.
AFP