NEW YORK (AP) -- The dollar hovered near a record low Monday against the euro after the 13-nation currency climbed to within 1 cent of its all-time high, while the pound backed down from a 14-year record.
Currency traders now turn their eyes in the coming days to economic data that could further the pound's rally. Key inflation figures from the U.S. and Britain due out Tuesday will be followed Wednesday by the minutes from the Bank of England's last meeting on interest rates.
The data could increase the risk of a British rate hike while worries about sluggish economic growth in the U.S. persist.
Higher interest rates, used to combat inflation, can bolster a currency by making certain types of investments more attractive.
Movement against the dollar could drive up the price of exports and tighten the pinch for travelers to Europe just as the tourist season approaches.
Supported by crackling economic growth, falling jobless figures and interest rates much lower than those in Britain and the United States, the euro bought $1.3549 in late New York trading after climbing to $1.3576 -- its highest point since January 2005 and near its December 2004 record of $1.3667.
It traded at $1.3539 late Friday.
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