April 19, 2008	Saturday	Rabi-us-Sani 12, 1429

LONDON, April 18: The euro slid against the dollar here on Friday, weakened by profit-taking, after trading close to its record high against the US currency on dimming prospects for a eurozone rate cut, traders said.

In late trade, the European single currency slumped to 1.5730 dollars from 1.5910 late Thursday in New York.

The dollar rose to 104.56 yen from 102.48 on Thursday.

Analysts said the euro wilted against the dollar on profit-taking, which often occurs at the end of the week, as well as on a return of risk aversion, which tends to favour the dollar.

Currency analysts said that despite the dollar’s gain on Friday, the currency remained fragile and could fall further against the euro in the coming days.

Dealers said the euro could strike new highs past the $1.60 level in the short term owing to surging inflation in the 15-member eurozone.

“The euro’s rise is only natural and (traders) will ultimately pay little heed to European officials’ attempts to curb the currency’s strength due to the economic conditions in Europe,” said Kenichi Yumoto, a manager in foreign exchange sales at Societe Generale.

The euro has struck a series of record levels above 1.59 dollars this week as data released Wednesday showed that eurozone inflation reached an annual rate of 3.6 per cent in March the highest since the launch of the single currency in 1999.

On Friday, the euro changed hands at $1.5730 against $1.5910 late Thursday, at 164.40 yen (163.06), 0.7885 pounds (0.7986) and 1.6144 Swiss francs (1.6004).

The dollar stood at 104.56 yen (102.48) and 1.0262 Swiss francs (1.0055).

The pound was at 1.9955 dollars (1.9918).—AFP