The dollar fell to a record low against the euro for a third straight session today amid expectations of US interest rate cuts that are tarnishing the currency's appeal.
The euro rose to a record of $1.4130 against the dollar, and earlier this morning it traded at $1.4124, up 0.3 per cent on the day. The dollar index slipped to a 15-year low of 78.398 and was down 0.2 per cent from late US trade on Friday at 78.364.
Market players are keeping a close eye on whether the dollar breaks the all-time low of 78.19 struck on its trade-weighted index in 1992.
Investors ignored more complaints from French officials about the euro's strength versus the greenback, which again dropped to a 15-year low against a basket of major currencies.
The Federal Reserve's 50-basis point cut in overnight rates last week to 4.75 per cent stoked expectations of even more monetary easing that would erode the dollar's rate appeal compared with the euro and higher-yielding currencies.
Chances of an October easing by the US Federal Reserve were about 66 per cent on Monday, well above the 26 per cent priced in from a week ago, according to Reuters data, and at least one more quarter percentage point cut has been factored in by year-end.