Euro breaks $1.20 mark

THE euro leapt to a lifetime high against the dollar on Friday, rising above $1.20 for the first time since its launch in January 1999 as investors sought to capitalise on bearish sentiment towards the US currency.

The euro gathered momentum on the back of last week's peak at $1.1978, breaking the psychological $1.20 level as the expiry of sizeable currency options contracts drove a thin, post-Thanksgiving market.

The dollar has struggled across the board in recent days as upbeat economic data from the United States failed to dispel concerns the country needs a weaker currency to reduce its vast current account deficit.