The dollar edged back from a record low against the euro and a basket of major currencies today.
By 9.20am, the euro was down almost 0.4 per cent on the day at $1.5580, having hit a record high of $1.5651 earlier in the session.
Against a basket of currencies the dollar was flat at 72.005, after hitting an all-time low of 71.701 earlier in the session.
The dollar also broke below 100 yen for a second day with more hedge fund problems stoking concern about damaged credit markets, driving Asian stocks lower.
Dollar woes deepened yesterday after data showing a surprise drop in US retail sales for February, building concern that the economy had slid into a recession.
Hefty dollar sales have left the US currency down nearly 7 per cent since the start of 2008 against the euro.
Investors have dumped the dollar on doubts about the Federal Reserve's ability to stem a broadening crisis in the massive US mortgage bond market, which is tightening credit conditions and offsetting its efforts to stimulated growth.
A fall in Asian stocks also boosted the yen, which benefits from heightened investor caution. Tokyo's Nikkei share average fell 1.5 per cent.
The dollar fell below 100 yen for the second straight day, a level not touched for 12 years before recovering to 100.38. So far this year, the dollar has shed 10 per cent against the yen.