The euro is continuing its strong performance against the dollar after the US Federal Reserve cut interest overnight.
The euro rose to US$1.3987 by mid morning - just off last night's night high of of $1.3989.
The US dollar struck a 15-year low against a basket of currencies after the Federal Reserve cut interest rates by a half percentage point, eroding the US currency's yield appeal.
The Fed cut overnight interest rates to 4.75 per cent from 5.25 per cent to help shore up the economy and relieve strains in money markets, sparking broad dollar selling while boosting risky assets like stocks and higher-yielding currencies.
The dollar fell broadly, pushing its trade-weighted index to 79.091, its lowest since 1992, but recovered to 79.229 by 0808 GMT.
The US currency held near its weakest level against the euro and analysts said the dollar was likely to remain under pressure.
"The lower interest rate means the dollar has lost more support," said Laura Ambreseno, currency strategist at Morgan Stanley. "I think the move will help other central banks get back on to a hiking path as this boost for the U.S. economy should help the rest of the world maintain strong growth."
Hours after the Fed's announcement, the Bank of Japan held its overnight rate at 0.5 percent, a widely expected move that prompted limited market reaction.
The dollar had slipped to 115.90 yen. The euro dipped to 161.85 yen after pushing up to a five-week high of 162.56 yen on Tuesday.
The New Zealand dollar, whose steep interest rates make it a bellwether of risky carry trades, hit its highest level in more than a month against the dollar, to $0.7300.