The dollar tumbled through the psychological $1.41 level against the euro this morning and hit a 31-year low against the Canadian dollar.
The euro edged up to $ 1.412 - the highest since the single European currency was launched in 1999. The single European currency has surged around 1.6 per cent in the past week, its biggest weekly gain since November.
The currency hit record lows as investors dumped the US currency after the Federal Reserve's aggressive rate cut this week.
Support for the dollar has crumbled, dragging it to a 15-year trough versus a basket of currencies and pushing the dollar above $1.41 level.
A 50-basis point cut in the fed funds rate on Tuesday has battered the dollar as it has tarnished the appeal of assets denominated in the currency. Traders see this trend continuing, given expectations that the Fed may cut rates again this year.
Bucking the broad trend, the dollar and other major currencies edged up against the yen. The dollar climbed 0.2 per cent from late levels in New York to 114.85 yen recovering from a low of 113.98 yen hit the previous day.
Against a basket of currencies, the US currency was at 78.537, approaching a lifetime low of 78.190.