LONDON, Sept 21: The euro raced to an all-time high of $1.4120 on Friday, with analysts predicting new records in the weeks ahead amid expectations of more interest rate cuts by the Federal Reserve.

The European single currency leapt past $1.41 for the first time since its creation in 1999 following a Federal Reserve warning that US mortgage market woes could worsen.

In late European trading, the euro pulled back to stand at $1.4076, which compared with $1.4065 in New York late on Thursday.

The dollar rose to 115.62 yen, against 114.63 late on Thursday.

“The expectation of bigger interest rates cuts in the US relative to other countries, as a result of intensifying concerns about the US economy, are weighing heavily on the currency (the dollar),” said Calyon analyst Mitul Kotecha.

He added that the European single currency “looks set to push even higher over the short-term. “We see nothing to interrupt the trend,” said Veronique Riches-Flores, chief economist at Societe Generale.—AFP