The euro set a record high versus the dollar for the fifth session running today and held just below last year's lifetime high against the yen as investors' long-standing grim views of the US currency dominated markets.
Trading volumes were thin in the holiday period between Christmas and New Year and there was little news to hold investors' attention.
"The market has no interest in trying to buy dollars...There are also not too many people actively dealing now," said Paul Mackel, currency strategist at ABN AMRO in London.
This morning the euro rose as high as $1.3646, gaining a quarter percent on the day.
It also strengthened against the British pound to reach its highest level in one year at 70.68 pence.
Against the yen, the euro traded at 140.75 yen, just below last year's record high around 140.90 yen.
Global investors' worries about the US current account deficit have depressed the dollar by some four percent against the yen and eight percent versus both the euro and the British pound so far this year.
Many analysts predict further losses if markets continue to question the future ability of the US economy to attract enough foreign funds to plug its external deficit.
"I think it will be hard to stop the euro from rising against the dollar," said Hideaki Furumaya, forex manager at Trust and Custody Services Bank.
No major US data was scheduled for release today. In Europe, data from the GfK research group showed German consumers possibly in slightly higher spirits early next year as their willingness to buy hit a three-year high in December.