The euro roared to a new high against the dollar on Tuesday, reaching $1.6038 in European trading as markets worried about the ongoing U.S. lending crisis and the state of the country's economy.

The 15-nation currency's new all-time high against the dollar surpassed its previous record of $1.6018 set on April 22.

After reaching the record, the euro fell back to $1.5969 -- still above the $1.5916 it bought in late New York trading Monday.

The rise means that everything is more expensive for Americans who are traveling in the euro zone, from ice cream to beer to souvenirs.

"Obviously it is a problem," Gary Berman, a New Jersey cardiologist visiting Berlin said. "I think twice about where we have dinner now, and I work harder to negotiate rates."

The increase came even as a new report showed that German investor confidence tumbled to its lowest level in more than 16 years amid soaring food and oil prices in Europe's biggest economy.