The dollar clawed back from record lows against the euro and a basket of major currencies on this morning.
The euro fell 0.1 per cent from late US trade to $1.4404 off a record peak of $1.4439 hit on trading platform EBS on Monday.
Some traders said the market's next target for the euro was around $1.4540, the equivalent of the 1995 record low of the dollar against the German mark.
But the dollar remained pressured by expectations the Federal Reserve will cut interest rates this week to avert a further growth slowdown.
The Fed is widely seen lowering rates by a quarter-point to 4.5 per cent after a two-day meeting ending tomorrow to prevent broader damage to the US economy from deterioration in the housing sector.
Some traders said the dollar edged up slightly from record lows on a Wall Street Journalreport on today that said a Fed rate cut this week is no sure thing and officials are not seriously considering a half-point cut.