The euro has set another record high against the dollar, as the value of the greenback continues to fall following last week’s cut in US interest rates.

In early Monday trading, the euro climbed to $1.4130, beating Friday’s high of $1.4120.

The higher value of the euro has led to fears over job cuts in Europe, as it makes exports to the US more expensive.

Separately, gold prices are near a 28-year high, while oil has fallen. US crude lost 48 cents to $81.14 a barrel.

Oil prices had fallen back from last week’s record highs thanks to production returning to normal in the Gulf of Mexico after a storm caused a number of production cuts.

London’s Brent crude was down 45 cents to $78.85 a barrel in early Monday trading.

Airbus warning

The US Federal Reserve’s cut in interest rates last week, from 5.25% to 4.75%, was aimed at restoring confidence in the financial markets and in the housing sector.

The knock-on effect of further reducing the value of the dollar led to pan-European planemaker Airbus warning last week that it may have to make further job cuts if the euro continues near its current highs.

Gold was trading at $734.20 an ounce in early Monday trading in London, just short of a near three-decade high.

The value of the metal also rises in times of global markets turmoil, as it is seen as a traditional haven in uncertain times.

Source: news.bbc.co.uk
Images: news.bbc.co.uk

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