LONDON - The euro shot to a new all-time peak of 1.3329 dollars in early European trade, on speculation that China would reduce its holdings of US government bonds, dealers said.
It was the fourth day in a row the euro has reached record highs against the dollar in Europe.
And at 1.3329 dollars Friday the euro topped a fresh peak reached earlier in Asia, where it had easily breached the 1.3300 level and was trading at around 1.3315 in Tokyo afternoon deals.
The single European currency had hit a record high of 1.3249 dollars late Thursday in London.
The dollar also weakened against other major currencies, pushing the pound above the 1.90-dollar level to reach 1.9025 dollars at 0620 GMT.
The yen was trading at 102.15 to the dollar, the highest level since January 2000.
And the South Korean won hit freshAnd the South Korean won hit fresh seven-year highs against the tumbling dollar earnings in an effort to avoid further losses, dealers said.
The dollar was at 1,046.50 won, the lowest level since November 21, 1997 when the currency closed at 1,040 won.
Dealers said the South Korean government had not actively intervened in the market, with few options available to slow the pace of the won's rise despite the concerns over how this may impact exports, the country's economic lifeline.
Foreign exchange trading was volatile as US markets had been closed Thursday for Thanksgiving.
Dealers in Singapore said fundamental dollar weakness was exacerbated by a report in a Chinese newspaper that China was cutting its holdings of US Treasury debt in its foreign exchange reserves to avoid losses from a weakening dollar.
"There are speculations that Chinese authorities have cut their bond reserves," IDEAglobal currency strategist Malcolm Tan said.
"Today is an extension of the weak dollar trend," he said.
The dollar slide continued amidst concerns about the ballooning US current account and budget deficits and the US authorities' reticence in addressing the depreciation of the dollar. /www.story.news.yahoo.com/