The euro hovered just below a record high near $1.60 versus the dollar on Thursday, with sentiment supported by views the European Central Bank is unlikely to cut rates soon.

By contrast, the dollar was weighed as investors focused on slowing economic growth due to credit problems and a limping housing market with further interest rate cuts seen from the U.S. Federal Reserve.

Investors awaited a speech by ECB Governing Council member Axel Weber later in the day to see how tough he would be on price risks after record euro zone inflation cemented arguments for the central bank to hold rates at 4 percent. Analysts said it was just a matter of time before the euro breaks through the psychologically key $1.60 level, given relative strength in the euro zone economy and the view the Fed will keep cutting rates from 2.25 percent.

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"There's quite a lot of momentum behind the euro," said Paul Robson, currency strategist at RBS Global Banking, adding he saw a break above $1.60 in the next week or so.

"The euro is probably one of the only safe ports in the current credit-tightening storm, and that's been giving euro a little bit of a boost."

The euro was up 0.1 percent at $1.5965 <EUR=>, having earlier matched a record high of $1.5977 hit on Wednesday according to Reuters data.

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