The dollar hovered near a record low to the euro this morning.
The euro eased 0.1 per cent to $1.511, just off a record high of $1.514 from yesterday. The dollar index, which tracks its performance against six major currencies, was little changed at 74.240, near a record low 74.070 hit yesterday.
The dollar was little changed against the yen at 106.40 yen after dipping below 106.
The dollar's performance came amid a sharp drop in US durable goods orders and home sales fuelled recession fears, and Fed Chairman Ben Bernanke signalled a readiness to cut interest rates again.
In contrast, the euro was supported by comments by ECB Governing Council member Axel Weber, who said yesterday that market expectations for the European Central Bank to cut rates failed to take into account the dangers of higher inflation.
The German economy is solid and the euro zone economy is only likely to slow to just below its long-term potential rate this year, Mr Weber said. The ECB would act if long-term inflation expectations seemed to be rising significantly, he added.
Surging commodity prices continued to underpin currencies such as the Australian dollar which traded near a 24-year peak against the dollar of $0.9460.