THE euro yesterday hit parity with the US dollar for the first time since February 2000, giving a psychological boost to the three-year-old currency.

Europe's single currency, which has hovered near parity for weeks, rose to an exchange rate of 1.0032 dollars.

Pro-euro pressure group Britain in Europe hailed the news as ''hard to swallow'' for anti-Europeans, saying it would provide some comfort for hard-pressed British exporters.

Lord Haskins, a member of the council of the group said: ''The news that the euro has broken dollar parity will be hard to swallow for those anti-Europeans who had glorified in its previous weakness.

''The rising euro will bring some temporary respite for hard-pressed British exporters, but in the long-term industry needs the stability that can only come from joining the euro."

However George Eustice, campaign director of the 'No' campaign said: ''The Government were hoping for a period of stability before their assessment of the five (economic) tests. Rapid moves in the euro exchange rate are going to make it difficult for the Government to claim the five tests are 'clearly and unambiguously' met."