The dollar continued to fall today to reach a record low against the euro and enter a fresh 11-year trough against sterling on worries about a festering US current account deficit and US interest rates.
The dollar rose to 106.30 yen in late Asian trading on suspected Japanese intervention after spending the day teetering above three-year lows set yesterday.
The euro broke through the psychologically important level of $1.27 to touch $1.2712 despite concerns about option-selling at that level.
Sterling clocked a fresh 11-year high against the embattled greenback, peaking at $1.8138 in Tokyo trading.
The dollar's slide over the past two days was triggered in part by comments from US Federal Reserve Board Governor Mr Ben Bernanke that the Fed was justified in holding interest rates at 45-year lows even though the US economy seems to have improved.
The prospect of interest rates remaining low is likely to encourage investment outflows from the dollar to higher-yielding currencies at a time when the United States is desperate for capital inflows to cover its huge current account deficit.