The euro hit a new record high today against the dollar to reach $1.3379 in early morning trading and top a record set earlier in Asian trading.
The dollar also fell against the yen to its lowest level since March 2000 today as traders played down the chances of joint market intervention by European and Japanese authorities.
One of Japan's top currency policy officials said yesterday that "conditions are in place" for Japan and Europe to act jointly to support the dollar and that other countries hurt by the falling currency could join in for any intervention.
But many market players said such action was unlikely and continued selling the dollar.
Earlier the euro bought around $1.3365, up from $1.3345 in late New York trade and just off the fresh record high of $1.3375 hit earlier in the day.
The dollar was at 102.20 yen after falling to 102.11, a fresh four-year low and down nearly half a per cent from late trading in New York.
The US currency was at $1.9350 per pound, near a 12-year low and close to levels traded just before Britain was ejected from Europe's Exchange Rate Mechanism in 1992.
Earlier this week ECB chief Mr Trichet indicated that the ECB would keep its policy stance of vigilance against inflation, comments traders viewed as suggesting the central bank is willing to tolerate some euro strength.