NEW YORK, Dec 27: The dollar dropped against the euro on Thursday, its fifth straight daily decline, after a weaker-than-expected US durable goods report boosted the case for more Federal Reserve interest rate cuts next year.

The assassination of Benazir Bhutto in Rawalpindi also unsettled investors, lifting safe-haven assets such as gold and the Swiss franc and adding to dollar selling.

Early afternoon in New York, the euro was at session highs around $1.4634, up almost 1 per cent on the day for its best level in nearly two weeks and the biggest one-day advance since Nov 20.

The euro was on track for its fifth straight day of gains versus the greenback. With a 2.2 per cent gain for the period, it was the biggest five-day advance since the period ended Nov 30.

The euro also hit a record high against sterling at 73.39 pence.

—Reuters