LONDON - The euro pushed above 1.33 dollars Tuesday for the first time since the beginning of the year after structural weakness of the US currency got the better of investors' patience.
The euro settled at 1.3338 dollars from 1.3217 late on Monday in New York, after hitting 1.3363 dollars earlier in the session.
The dollar stood at 104.56 yen from 105.09 on Monday.
Audrey Childe-Freeman, an economist with the Canadian Imperial Bank of Commerce, said technical factors had pushed the euro through the 1.33 dollar barrier, adding: "The upward trend could continue".
The euro was at a nine-week high against the dollar as markets braced for a big US trade deficit in data due for release on Wednesday.
Speculative buying kicked in during the afternoon session, pushing the euro past 1.33 dollars, at which point activity gathered further momentum, said Gary Noone at Informa Global Markets.
According to a market consensus, US data is expected to show the trade deficit narrowing slightly from December's 56.40 billion dollars and the record 59.3 billion recorded the previous month. But some expect the gap to be wider in January.
"It looks like the dollar needs a good fix to keep it supported. It looks like none will be forthcoming," said Noone.
The yawning trade gap has been a thorn in the dollar's side for some time.
The US currency has been in the doldrums recently on concern over the country's budget and current account deficits, and talk that many central banks could move currency reserves away from the United States.
Little economic data was released Tuesday, giving speculators a chance to build positions. It was also true that of late the dollar has come under pressure on quiet days, Noone said.
The pound and yen also rose on the dollar. The former rose briefly past the 1.93 dollar level to set a new high for 2005.
The pound faces a key test Thursday when the Bank of England decides on interest rates. No change is expected although most analysts concede that a small chance of a hike remains.
The yen, meanwhile, continued higher after a solid performance during Asian trading hours in the wake of strong Japanese economic data.
The number of full-time workers in Japan increased 0.8 percent in January from the same month a year earlier, the first rise in just over seven years, government data showed.
In addition, total Japanese household spending in January rose 0.5 percent to an average of 303,266 yen from a year earlier, the first rise in five months.
The euro was changing hands at 1.3338 dollars against 1.3217 late on Monday in New York, 139.47 yen (138.94), 0.6916 pounds (0.6900) and 1.5493 Swiss francs (1.5522).
The dollar stood at 104.56 yen (105.11) and 1.1608 Swiss francs (1.1742).
The pound was trading at 1.9292 dollars (1.9151), 201.66 yen (201.30) and 2.2394 Swiss francs (2.2483).
On the London Bullion Market, the price of an ounce of gold stood at 437.25 dollars against 433.00 dollars late on Monday.
03/08/2005 19:02 GMT