The dollar continued to lose ground across the board today after a two cents hammering against the euro yesterday marked the end of a week-long recovery.
The euro rose three quarters of a per cent to $1.2673, coming back within sight of record peaks near $1.29 before paring gains in thin, volatile trade, while sterling and other major currencies kept the greenback pressured across the board.
The dollar suffered its biggest one-day fall against the euro in eight months yesterday after a statement by euro zone finance ministers voiced concern about currency market volatility but failed to outline steps to curb the pace of the euro's recent rally.
The euro turned tail from record peaks last week after European Central Bank President Mr Jean-Claude Trichet spoke out about "brutal" currency moves and excessive volatility.
But Monday's joint statement from the euro zone finance ministers and Mr Trichet left the market unimpressed and by 12.15 Irish time today it had still gained nearly three cents in 24 hours to $1.2625.