The dollar resumed its downtrend today, approaching within half a cent of last week's record low versus the euro as selling gathered steam before comments from the European Central Bank chief and US economic data.
The greenback had clawed back some ground against the yen after data suggested Japanese economic growth had slowed, but dollar bears reemerged after sterling clocked a nine-month high against dollar after upbeat UK data.
"There has been some doubt over the past few days that the big trend up (in euro/dollar) had come to an end. But as cable (sterling/dollar) hit new highs it reassured people that the dollar was still under pressure," said Mr Lee Ferridge, senior proprietary trader at Rabobank.
Since mid-October, the dollar has lost 7 per cent against the yen and the euro on concerns about the US current account deficit and speculation Washington is happy to see a weaker dollar.
By 12:50 p.m., the dollar stood at $1.3295 per euro, down 0.15 per cent and within sight of Friday's record low beyond $1.33.
ECB President Mr Jean-Claude Trichet, who has warned recent euro moves were "brutal" and "unwelcome", is testifying before the European Parliament from 2 p.m.
A preliminary reading of third-quarter US growth, Chicago manufacturing activity data and consumer confidence figures from the Conference Board for November are also due at 1500 GMT.