Dollar at new low against euro

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FRANKFURT, Germany (AP) -- The U.S. dollar hit a new all-time low against the euro on Thursday, with the euro trading above $1.40 for the first time since the common European currency was introduced.

The euro bought $1.4023 in early European trading, up from its previous high of $1.3987, hit in New York late Wednesday.

A higher euro makes goods from the 13-nation euro zone more expensive for customers elsewhere, and cuts into manufacturers' profits if they try to keep the dollar price of products constant. While it makes U.S. exports cheaper, it cuts the spending power of Americans visiting Europe.

The euro has benefited from healthy economic news in the euro zone and the European Central Bank's campaign of gradual interest rate increases.

However, its current strength is widely seen primarily as a result of problems afflicting the dollar.

Source: CNN U.S.