The dollar plunged to a record low against the euro and hit nine-year lows versus a basket of currencies today amid mounting expectations the world's economic powers will do little to halt its decline.
At 9 a.m. the dollar was trading at a record low of $1.3074 per euro, a quarter-per cent lower on the day. Against the yen, the dollar also shed a quarter of a per cent from the previous New York close to trade at 103.74.
Analysts expect little action from the meeting of Group of 20 finance officials, starting in Berlin tomorrow, particularly after US Treasury Secretary Mr John Snow said yesterday that market intervention was "non-rewarding at best".
A German government source also said the G20 did not plan to issue a statement on currencies, saying the talks among finance ministers and central bank chiefs from rich and emerging market nations were not an appropriate forum for exchange rate debate.
With little to stop the dollar's decline, markets continued to focus on persistent imbalances in the US economy.
Mr Snow said the responsibility for trimming the US deficit - seen as the main cause of the dollar's problems - cannot rest solely on the United States alone and other countries must help by boosting demand.
He also said the US trade partners should boost their own growth rather than complain about the dollar's weakness.