BERLIN (AP) -- The dollar hit a new all-time low against the euro, which rose to $1.3335 on Tuesday as new figures showed that U.S. economic growth in the third quarter was stronger than previously estimated.
In late New York trading, the euro eased back to $1.3280, below its intraday high but still above Monday's late rate of $1.3273.
The dollar's weakness has been fueled by concern over the U.S. trade and budget deficits, and analysts say markets are paying only limited attention to other economic data against that background.
The dollar hit its low against the euro, whose previous record of $1.3329 was set Friday, shortly after European Central Bank President Jean-Claude Trichet renewed his assertion that the euro's rapid rise against the U.S. currency is "unwelcome."
Despite Trichet's attempt to talk the euro down, the dollar ended mixed against rivals on Tuesday, falling against the euro, British pound and Swiss franc, but strengthening slightly against the Japanese yen and Canadian dollar. The pound was quoted at $1.9107 from $1.8940 late Monday, while the dollar bought 103.03 yen, up from 102.82; 1.1392 Swiss francs, down from 1.1422; and 1.1879 Canadian dollars, up from 1.1838.
Meanwhile, economic data from the United States on Tuesday came in "OK but mixed," though markets remain more concerned with the twin U.S. deficits, said Lee Ferridge, chief currency strategist at Rabobank in London.
Before the dollar dropped to its new low, the Commerce Department reported that the U.S. economy -- helped out by more brisk consumer and business spending -- expanded in the third quarter at an annual rate of 3.9 percent, stronger than previously thought.
The new reading on gross domestic product, which is based on additional data, was up from the 3.7 percent growth rate first estimated for the July-to-September quarter.
Meanwhile, a private research group reported that U.S. consumer confidence declined for the fourth consecutive month -- defying market expectations of an increase.
The dollar perked up slightly after a report that showed Chicago-area manufacturing activity grew at a greater-than-expected pace in November.
But the dollar's weakness has European officials concerned because the euro's rise tends to make European products more expensive, which threatens Europe's export-driven economic recovery.
The weak dollar makes life tougher for Americans living abroad, and the U.S. military announced this week that troops stationed in Europe would receive a significant cost of living increase to help provide some relief.
Still, Trichet's comments in testimony to the European Parliament -- which echoed his previous remarks -- didn't appear to advance the chances of the ECB wading into currency markets to reverse the tide, Ferridge said.
"It doesn't seem to be top of the agenda at the moment," he said, adding that "the trend is still intact" and the euro could top $1.35 in the next two weeks.
Asked about the possibility of cooperation between the euro zone and the United States to strengthen the dollar, Trichet said only that he appreciated Washington's oft-stated "strong dollar" policy.
"I have confidence in the capacity of the friends on the other side of the Atlantic ... to deliver over time the substantial reduction of the fiscal deficit," Trichet said. However, he also signaled that the ECB wasn't about to raise interest rates -- a move that likely would give extra impetus to the euro. Addressing monetary policy, he said current risks in the "medium-term wouldn't justify a change in policy." The ECB governing council meets Thursday to set interest rates for the euro zone.