The dollar reached a new all-time low against the euro, as a string of US macroeconomic data failed to convince traders of the dollar’s bright prospects.

By 1205 GMT the dollar reached $1.3546, surpassing a psychological $1.34 barrier. Against yen, it traded at 140.30 yen. Overall, the dollar is up 7% since the start of the year, and the trend is likely to continue into the new year on concerns about the looming current account deficit, and Bush administration’s passivity about the dollar’s slide.

"Momentum is once again against the dollar and the fundamental concerns about the U.S. deficits remain," said Chris Gothard, currency strategist at Brown Brothers Harriman in London.

"This is going to be an issue which hurts the dollar in the new year also. Technically there’s also pressure on the dollar and in a thin market there isn’t much support for it."

The U.S data released on Thursday indicate the rise in U.S. durable goods orders, although most of this increase comes from the volatile transportation industry. The personal consumption expenditures price index, usually considered by the Fed in its decisions, held steady at 1.5% for its core reading in November, offering the Fed little reason for another rate hike. The currency market was affected by a sharp decline in US new home sales, plunging 12%.