The euro was soaring to record highs against the greenback Friday as traders grew more convinced U.S. policymakers would cut the cost of borrowing at next week's Federal Open Market Committee meeting. Euros were buying, $1.4393 up from $1.4313 late Thursday, marking the best level ever for Europe's most widely used currency. The CurrencyShares Euro Trust ( FXE), which tracks the value of the euro, was rising 0.5% in New York market action. "Now we face the FOMC meeting next Wednesday, with the market increasingly expecting a quarter-point cut," says Michael Woolfolk, senior currency strategist at Bank of New York Mellon. "The downward pressure on the dollar continues to build." Expectations of rate cuts typically hurt the value of the dollar, as yield-seeking foreign-exchange investors tend to choose currencies where interest rates are higher. The pound was edging slightly higher to $2.0517, up from $2.0514 in the previous session. The dollar was buying 114.17 Japanese yen vs. 114.03 yen a day earlier. The CurrencyShares British Pound Sterling Trust ( FXB) was barely changed, while the CurrencyShares Japanese Yen Trust ( FXY) was off 0.1%. The Australian dollar was rising amid the belief officials there will need to raise interest rates to contain growing inflationary pressures. One U.S. dollar would buy AU$1.0915, down from AU$1.1018 previously. Elsewhere, the Mexican peso was rallying following a surprise move by the country's central bank to raise rates by a quarter-point to 7.5% from 7.25%. One dollar would recently buy 10.73 pesos, down from 10.82 pesos previously. The CurrencyShares Mexican Peso Trust ( FXM) was up 0.7%.