The dollar stayed near a record low against the euro and a 26-year trough versus sterling today as Federal Reserve Chairman Ben Bernanke said woes in the US housing market could worsen.
The euro was down 0.06 per cent at $1.3795 after reaching its strongest yesterday since its launch in 1999, hitting a record $1.3834 on electronic trading platform EBS.
Sterling was also down 0.03 per cent at $2.0520 after hitting a 26-year peak of $2.0548 on the Reuters dealing system yesterday. The dollar was up 0.03 per cent at 121.90 yen.
In a testimony before Congress yesterday, Mr Bernanke repeated that inflation is the Fed's top concern but said weakness in the housing sector would likely restrict growth in the coming quarters.
The Fed has also lowered its forecasts for US economic growth for 2007 and 2008.
The dollar dipped briefly after news that an underground electricity transformer exploded in midtown Manhattan yesterday.
The dollar's trade-weighted index against six major currencies was 80.437, after falling as low as 80.227, the weakest since April 1995.