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Euro strikes new 14-month peak on poor US GDP

The European single currency rose on Wednesday to a new 14-month peak above $1.35, after news of shrinking US economic growth and before the US Federal Reserve's latest monetary policy announcement.

At about 1510 GMT, the euro advanced to $1.3578, touching the highest level since November 18, 2011. In earlier deals, it had already struck similar peak at $1.3542 following upbeat eurozone confidence data.

The US economy contracted at a 0.1 percent rate in the fourth quarter last year, as Washington slashed defense spending and businesses cut investment ahead of the feared fiscal cliff, Commerce Department data showed Wednesday.

The fourth quarter estimate was lower than forecast. But it came after a strong 3.1 percent pace in the third quarter.