Euro Hits Record High Against Dollar

The euro spiked to $1.4873 before falling back slightly to $1.4844 in early European trading.

Its previous high of U$1.4856 was hit Wednesday, before it settled at $1.4848 in late New York trading.

The dollar was unchanged against the yen, buying 108.68 yen -- the same as in late New York trading. The British pound, meanwhile, rose slightly to $2.0652 from $2.0644 the night before.

The Thanksgiving Day holiday in the U.S. kept many players on the sidelines, while Japanese financial markets will be closed Friday for the Labor Thanksgiving Day holiday.

While the thin holiday trade could invite sudden, sharp moves, traders expected the market to be largely subdued for the rest of the day.

The euro, the pound and other currencies have been climbing steadily against the dollar since August amid fears for the health of the U.S. economy, stoked by the subprime credit crisis.

The dollar has been further weakened by U.S. interest-rate cuts -- which can be used to jump-start an economy, but can also weaken a currency as investors transfer funds to countries where they can earn higher returns. The Federal Reserve has already cut rates twice.