My Dreams of a House in France are Fading Fast

Euro hits record high against dollar

BERLIN, Germany (AP) -- The euro climbed to a record high of $1.5070 in midmorning European trading on Wednesday as sentiment increased that the U.S. Federal Reserve would continue its rate cut campaign.

The 15-nation currency hit a series of highs, culminating in $1.5071 before 10 a.m. (0900 GMT) before falling back slightly to $1.5063, nearly a full cent more than the $1.4967 it bought in late trading in New York on Tuesday, which was equal to the last record high it had reached, back in November.

In other trading, the British pound soared to $1.9941 from $1.9862 late Tuesday, while the dollar fell to 106.40 Japanese yen from 107.26 yen.

Along with the rise in the British pound, which is nearing $2 again, the surging euro will not be kind to Americans visiting Europe -- they'll have to pay more for hotel rooms in Rome, entrance fees at the Louvre and chocolates in Belgium.

On the other hand, the stronger euro makes shopping trips to the U.S. more appealing to Europeans.