July 14, 2007	Saturday	Jamadi-us-Sani 28, 1428

LONDON, July 13: The euro shot up over 1.38 dollars here on Friday for the first time since its creation in 1999, as weaker-than-expected retail sales in the United States compounded concerns about the country's economy.

The single European unit soared as high as 1.3814 dollars in afternoon deals before falling back to 1.3790.

The pound also jumped to 2.0367 dollars, marking a fresh 26-year high point for the British currency, though it too settled back in later trades to 2.0353.

The dollar's fresh falls came after the US Commerce Department revealed that US retail sales fell unexpectedly in June, as American consumers cut back their spending amid a persistent housing slump and higher gasoline costs

Sales fell by 0.9 per cent, defying most Wall Street analysts' forecasts that they would remain unchanged.

Earlier Friday, the euro also hit a record high 168.95 yen on expectations that Japanese interest rates will remain low for some time, in contrast with the prospect of higher eurozone borrowing costs in the coming months.

The euro was changing hands at 1.3790 dollars, against 1.3787 dollars late on Thursday, 168.30 yen (168.78), 0.6778 pounds (0.6790) and 1.6576 Swiss francs (1.6587).

The dollar stood at 122.05 yen (122.40) and 1.2023 Swiss francs (1.2028).

The pound was being traded at 2.0353 dollars (2.0302).

On the London Bullion Market, the price of gold firmed to 666.50 dollars per ounce, from 667.25 dollars late on Thursday.—AFP