Analysts say the spike is a result of market speculation.

FRANKFURT, Germany (AP) – The euro rose to another record high against the U.S. dollar Wednesday, spiking to $1.2127 as it resumed a surge driven by worries about the U.S. trade and budget deficits.

The 12-nation currency’s latest high came in European trading just hours after it broke above $1.21 for the first time in its nearly five-year history in Asian trading. The euro has set a string of records since last Friday. In late New York trading, the euro was quoted at $1.2104, up from $1.2082 late Tuesday.

The momentum behind the rise, which has boosted the euro by around 15 percent against the dollar since the beginning of this year, shows no sign yet of abating.

While currency analysts generally attribute the euro’s strength largely to the United States’ budget deficit and its growing trade deficit with other countries, some said the most recent climb could be sparked by speculation more than economic indicators.

“I believe (the climb) is strongly affected by speculation,” said Michael Schubert, an economist at Commerzbank in Frankfur t. “Speculators are trying to maintain a high euro in the relatively low volume of end-of-year trading.”

Other factors such as fears of terrorist attacks against U.S. interests, also could be dragging the dollar down, Schubert said, citing a U.S. State Department advisory released Tuesday regarding possible attacks in Kenya.

Economists in Europe say the euro’s recent advance has been so rapid that the European Central Bank may be forced to intervene and slow what it may see as a disruptively fast exchange-rate shift.

The higher euro could hurt renewed growth in Europe by making exports more expensive against foreign competition; conversely, it helps U.S. exporters by give them a price advantage against producers whose costs are in other currencies.

However, Schubert was cautious about the prospects of intervention, arguing that the ECB would only act if the euro continues to rocket ahead. A value of $1.25 before the end of the year, for example, would serve as a “shock” to the continent’s economy, he said.

Earlier Wednesday, the European Union’s statistics agency said that the bloc’s economy grew by 0.4 percent in the third quarter, led by exports while domestic consumption remained stable.

Eurostat said initial estimates showed that exports grew by 2.2 percent in the 12-nation euro zone and 1.9 percent in the EU as a whole after second-quarter declines.

The greenback was mixed against other major currencies. In late New York trading, the dollar bought 108.12 yen, down from 108.61 yen late Tuesday. It was quoted at 1.2875 Swiss francs, down from 1.2885, and 1.2997 Canadian dollars, up from 1.2987. The British pound fell to $1.7271 from $1.7289.

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