The euro struck a high against the dollar today as poor US data on durable goods and home sales the previous day reinforced expectations for a Federal Reserve rate cut next week.
The euro reached $1.4374 - the highest since the single European currency arrived in 1999.
The yen crawled higher against major currencies as a decline in Wall Street stocks overnight prompted some traders to bet on a further unwinding of carry trades.
The dollar dipped to 114.08 yen from near 114.20 yen and was in sight of a six-week low of 113.25 yen hit on Monday. The euro pulled back slightly to 163.30 yen from 163.55 yen.
The Federal Reserve is widely expected to trim overnight rates by 25 basis points to 4.5 per cent at a policy meeting ending next Wednesday following a half-point cut last month and a sizable slash in its discount rate.
The souring US economy and likelihood of further Fed rate cuts has prompted investors to dump the dollar in favour of the euro and other major currencies whose economies have weathered the turmoil in credit markets over the past few months.