The Euro crept steadily higher against the dollar, reaching a new record and then continuing its climb in morning European trading on Monday, as markets looked for signals from the U.S. Federal Reserve about a likely rate cut this week.

The 13-nation Euro opened at $1.4428, besting its previous high of $1.4393 on Friday in New York and then proceeded to climb to $1.4438 in midmorning trading, before falling back to $1.4430 - well above the $1.4385 it bought in late New York trading on Friday.

The Euro has been climbing steadily against the Euro all year, soaring to new highs almost weekly since August on the back of market fears over the U.S. economy's health because of the sub prime credit crisis and increasingly disappointing economic reports.

But the euros’ rise, which makes goods from the U.S. much cheaper to buy and shopping for U.S.-bound tourists ideal, can hurt exports from countries that use the Euro, particularly Germany and France.

Earlier this month, a survey looking at German investor confidence showed strong concern about exports. The strength of the Euro risks making European exports less competitive.