The euro has hit a record peak against the US dollar on expectations of higher interest rates in the euro zone. It rose as high as $1.6019 as weak US housing market data underscored fears over the health of the US economy. The euro has rallied in recent months and Tuesday's peak came as European central bankers raised the prospect of higher rates to control inflation. http://news.bbc.co.uk/1/hi/business/7361342.stmHow are interest rates and exchange rates linked? What are the likely effects of the rise in the euro? The following video clip will provide some clues.
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