The dollar is hovering near a record low against the euro and a 26-year low versus sterling today.
The euro rose to a two-year high around $1.3620 today, inching closer to a record high of $1.3670. Against sterling, the dollar was at $2.0070 down 0.1 per cent.
The dollar was dragged down by expectations for US interest rate cuts, and a monetary tightening outlook supported other currencies.
In contrast to sluggish US data, growth prospects are solid and inflationary pressure remains high in other countries, with major central banks such as the Bank of England and the European Central Bank seen boosting interest rates in coming months.
Sterling jumped to a 26-year high against the dollar at $2.0133 yesterday on expectations the Bank of England will raise interest rates by at least 25 basis points to 5.5 per cent in May.