The dollar hit a record low against the euro today amid fears that more US financial firms will be hit by credit market turmoil and expectations that the Federal Reserve will cut interest rates further.
Such worries came to the fore again after ratings agency Standard & Poor's said yesterday that a collateralised debt obligation (CDO) managed by State Street Global Advisors may have started selling assets.
The euro rose 0.35 per cent from late US trade late yesterday to $1.4724, after jumping earlier to a high of $1.4739 on electronic trading platform EBS.
The pound was up about 0.15 per cent at $2.1110 after hitting $2.1145 at one point, a fresh 26-year high.