The report, citing unnamed ECB sources, said there would be no intervention by the ECB until the euro hits $1.35.

The euro traded as high as $1.2418, topping its previous $1.2383 record.

The euro has risen by nearly 19% against the dollar this year and hit record highs in 12 of the past 14 trading sessions.

The general consensus is that the pressure on the dollar will persist Q&A: Why the dollar's in decline Click here to track the ups and downs of the euro against 24 currencies

"Things were relatively quiet this morning until this story came out suggesting from ECB sources that they did not see the need for any intervention," said Robert Sinche, global head of currency strategy at Citibank in New York.

"Whenever you put a number out there, the markets get very excited," he added.

Concerns over the US trade deficit have been behind the dollar's slide, despite the recent rebound in growth in the US economy.

Meanwhile, the role of the euro in international transactions, both in the capital markets and in commercial trade, is continuing to increase, said an ECB report published on Wednesday.

Its third annual report said that between the summer of 2002 and the summer of 2003, the volume of international debt issued in euros gradually caught up with the volume of debt issued in dollars.