LONDON, June 5: The European single currency soared to a record high against the yen and gained on the dollar on Tuesday on the eve of a likely increase in eurozone interest rates.

The European Central Bank was widely forecast to hike its key interest rate by a quarter of a percentage point on Wednesday to 4.00 per cent - the highest level in five and a half years.

And investors will be listening closely to the words of ECB president Jean-Claude Trichet after the decision is announced, for indications as to whether rates will rise further later this year.

In late trading on Tuesday, the euro climbed to $1.3517 from $1.3489 in New York late on Monday.

The European currency hit an all-time high of 164.60 yen earlier in the day, before pulling back to 164.47 yen in late trading.

The European single currency was also helped by data showing growth in the eurozone service sector and a report from the International Monetary Fund that said higher interest rates in eurozone were warranted.—AFP