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Euro rally could put brake on recovery

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October 18, 2013 07:34 AM EST | AP


LONDON — LONDON (AP) — The euro has pushed above $1.37 for the first time since February in a move that analysts say could crimp the single currency zone's recovery from recession.

Europe's single currency has garnered support in recent days largely by default — the dollar has suffered as the U.S. government struggled to raise the country's debt ceiling.

By early afternoon Friday trading in London, the euro was trading 0.1 percent higher at $1.3684, having earlier risen to $1.3704, its highest level since Feb. 1.

Analysts say the strength of the euro — which as recently as mid-July was trading below $1.30 — could make the eurozone's exports more expensive in international markets, threatening the overall recovery.

The 17-country eurozone emerged from its longest-ever recession in the second quarter.