The dollar hit a two-week low against the euro this morning to extend the previous session's sharp fall triggered by a Federal Reserve survey suggesting the US economy may be slowing.
The euro also hit a record high against the yen, in anticipation of a European Central Bank interest rate rise next week and on expectations that Japanese rates will stay lower than those of other major economies for some time to come.
The dollar posted its sharpest fall against the euro in three months yesterday after the Fed's Beige Book said US economic activity grew overall between June and mid-July, but that there were many local reports of slowing.
The report was interpreted as reducing the likelihood that the Fed would hike interest rates for an 18th straight time to 5.5 per cent at its meeting on August 8th.
By 8.33am, the dollar was down 0.1 per cent against the euro at $1.2726, just off an earlier two-week low of $1.2749 and after falling more than 1 per cent yesterday.
The dollar also hit a two-week low against a basket of currencies and fell to a one-week low against the yen, at 115.93 yen.
The euro rose to a record high of 148.06 yen, according to Reuters data, before retreating to around 147.71 yen.