The US dollar rallied just above yesterday's record low against the euro ahead of key economic data. At 8:30 this morning, the dollar was at USD1.2501 per euro. Yesterday the euro breached the psychologically important USD1.25 level, peaking at USD1.2511, while sterling climbed to USD1.7770. Markets were looking forward to a series of economic data due for release later in the day, including latest Japanese official intervention figures, US consumer confidence, existing home sales and numbers on US Midwest manufacturing. But worries over structural problems in the US economy, meaning the current account deficit and global security issues remained the main theme that kept the dollar lower. Analysts also cited low interest rates which could reduce the attraction of US Treasuries and therefore weaken demand for dollars, undermining the currency's value. The most recent data on portfolio inflows have shown ongoing demand for US debt but net US inflows below the level needed to fund the monthly current account deficit. //www.fxcentre.com