US$ soars on prospect of parity with euro

London

THE US dollar soared to its highest since April 2003 against a basket of currencies on Wednesday, reaching its strongest in a year against the euro as major banks and investors debated the possibility of another move towards euro-US dollar parity.

After a week-long rally driven by the post-election surge in US bond yields, some of the major banks have been sounding more cautious on the US dollar's immediate prospects.