The dollar fell to record lows against the euro and a basket of major currencies today as investors feared the fallout from the credit turmoil was far from over.
The euro rose as high as $1.4571, its highest level since its 1999 launch. It was last trading at $1.4565, up 0.7 per cent on the day.
The dollar index, which tracks the greenback's performance against a basket of six major currencies, dipped to 75.986, the lowest in its more than 30-year history.
Analysts said Citigroup announcement on Sunday of a potential $11 billion write-off in subprime mortgage losses had led many to believe that the worst from the housing market's slump was still to come.
The credit crisis, which stems from US home loans to people with poor credit histories that were packaged and sold to investors around the globe, has caused liquidity problems and contributed to negative sentiment towards the dollar.
In contrast to the Federal Reserve, which has slashed the fed funds rate by 75 basis points in the past two months, the European Central Bank has kept up hawkish rhetoric due to concerns about inflationary pressures.