July 20, 2007	Friday	Rajab 04, 1428

LONDON, July 19: The euro soared close to a fresh record against the dollar on Thursday as the US currency came under heavy pressure on fears for the health of the US economy.

The single European currency in late European trading was at $1.3806 after $1.3803 late Wednesday in New York. But the euro at one point surged to $1.3831, just shy of its record $1.3833.

The dollar meanwhile was trading at 122.10 yen against 121.94 on Wednesday.

The US currency suffered as traders interpreted Wednesday’s comments by US Federal Reserve Chairman Ben Bernanke as less than reassuring.

Bernanke said the problems encountered by the sub-prime loan sector of the US housing market were likely to get worse before they got better, adding that there was a risk that the “prolonged downturn in the housing sector could spill over into consumer spending.”

Analysts at BNP Paribas said Bernanke's comments revealed “a significant change in tone from the Fed, where previously Bernanke and other Fed members had attempted to play down the problems in sub-prime, describing them as 'contained'.”—AFP