LONDON, Sept 12, 2007 (AFP) - The European single currency shot to an all-time high of 1.3879 dollars Wednesday on fears of a recession in the United States and the prospect of lower interest rates in the world's biggest economy.
The US Federal Reserve is next week expected to cut American borrowing costs from 5.25 percent, where they have stood for more than a year amid weak US economic data and a global credit squeeze caused by the American housing downturn.
A total of 13 countries have adopted the euro since its birth on January 1, 1999.
The Mediterranean islands of Cyprus and Malta are to adopt the euro on January 1, 2008, which would swell the eurozone's ranks to 15 members, officials said Tuesday.
The 12 countries that joined at its inception were: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. Slovenia joined on January 1, 2007 after being admitted to the European Union in 2004.
A total of 14 EU member states are not currently in the euro club, including Britain, Denmark and Sweden which chose not to join at the start, an option new EU members were not given.
Here are key milestones in the euro's history:
-- December 31, 1998: Announcement of conversion rates for the euro against individual national currencies. Replacement of the European Currency Unit by the euro at the rate of one ECU for one euro.
-- January 1, 1999: The euro arrives, though only on paper. Payments -- salaries, purchases, currency transfers, etc. -- may be made in euros, either electronically or via cheques and money orders, though notes and coins do not yet exist.
-- January 4, 1999: The euro is quoted on foreign exchange markets. For three years, all money values may be expressed either in euros or national currency on a voluntary basis.
-- October 26, 2002: The euro falls to its historic low against the dollar of 0.8230 dollars.
-- January 1, 2002: Introduction of euro notes and coins, and gradual withdrawal of national currencies among member states.
-- June 30, 2002: End of the period during which both euro and national currencies may circulate in parallel. Beyond this date, and for a fixed period of months, national notes and coins will be exchangeable only at banks.
-- July 1, 2002: The euro becomes the single currency.
-- December 30, 2004: The euro climbs to a then record high of 1.3666 dollars.
-- November 15, 2005: In a correction, the euro falls as low as 1.1640 dollars.
-- January 1, 2007: Slovenia joins the euro, becoming the first former communist state to adopt the European Union's common currency.
-- April 27, 2007: The euro reaches record highs of 1.3682 dollars and 162.88 yen.
-- July 9, 2007: The euro strikes a record 168.51 yen.
-- July 10, 2007: EU finance ministers give the final go-ahead for Cyprus and Malta to adopt the single currency, on January 1, 2008 .
-- July 10, 2007: The euro hits a new pinnacle of 1.3740 dollars.
-- July 13, 2007: The European single currency breaks through 1.38 dollars, soaring to a record 1.3814, and rises to a new all-time high against the yen, reaching 168.95.
-- July 24, 2007: The euro beats its record high against the US currency as it reaches 1.3852 dollars.
-- September 12, 2007: The European single currency strikes an all-time pinnacle of 1.3879 dollars.
afp
Forex-Europe-euro
