December 25, 2003	Thursday	Ziqa’ad 1, 1424

LONDON, Dec 24: The euro hit a new record high against the dollar on Wednesday following the publication of disappointing US economic data, as financial markets thinned out on the eve of the Christmas holiday.

The single European currency stood at an all-time high of $1.2455 in New York against $1.2396 late on Tuesday in New York, on news that US orders for durable goods had plunged 3.1 per cent in November, a trader said.

The broad-based drop was the largest since September 2002. Orders had risen in four of the past five months.

Major currencies had been range-bound in earlier, abbreviated pre-Christmas trading in Europe, as the dollar proved resilient in the face of the first suspected case of mad cow disease in the United States.

“The only news overnight has been the discovery of a cow with BSE (bovine spongiform encephalopathy) in the US, but this does not appear to have had any impact thus far,” analysts at French bank BNP Paribas said in a research note.

Currency traders appeared unfazed by the news.

“In the US, so far the dollar has largely brushed off the... mad cow disease, and has traded in tight ranges ahead of the holiday period,” said Jodie Saul, economist at Canadian Imperial Bank of Commerce.

The only data for dealers in Europe to digest was news that French industrialists feel the country’s business climate is continuing to improve.

The national statistics body INSEE reported a two-point increase in a December sentiment indicator to 102 from 100 in November.

INSEE’s sentiment indicator has risen steadily since June, when it came to 90 after having fallen from a reading of 100 in December 2002.

In earlier London trading, the euro had changed hands at $1.2406.

The single European currency had also been worth 133.19 yen, compared with 133.12 in New York late Tuesday, 0.7026 pounds (0.7028) and 1.5605 Swiss francs (1.5612).

The dollar stood at 107.35 yen (107.38) and 1.2573 Swiss francs (1.2582).

The pound was at 1.7657 dollars (1.7630), 189.50 yen (189.33) and 2.2191 Swiss francs (2.2196).

On the London Bullion Market, the price of an ounce of gold stood at $410.85 against $409.25 on Tuesday afternoon.—AFP