The euro has risen to a three-year high against the dollar breaking through the previous record of $1.0599.
The euro climbed to $1.0625 before edging back slightly to a 0.29 per cent gain compared with Wednesday's New York close.
"The dollar fell on this story about UN weapons inspectors finding empty warheads in Iraq, breaking the euro through the stops that have been in the $1.06 area," said Mr Ralph Delzenero, managing director of foreign exchange at Bank One in Chicago.
The dollar also dropped to a four-year low of 1.3740 Swiss francs, down 0.80 per cent on the day as investors looked for a safe haven for their cash.