LONDON, April 18: The euro surged past the $1.36-level for the first time since December 2004 on Wednesday while sterling hit a near 26-year high against the dollar on fears for US economic prospects.

The weakened dollar “reflects a combination both of concerns about the US economy ... and at the same time the contrasting strength of the European economy which is growing much more rapidly,” Capital Economics analyst Jonathan Loynes said in London.

Owing to strengthening European economies, particularly in Germany, the market is forecasting higher interest rates for the eurozone and Britain in the coming months.

The euro reached as high as $1.3616 in early European trading before falling back to $1.3576 against $1.3564 late Tuesday in New York.

The pound sterling struck $2.0133 to reach its highest reading since June 1981.—AFP