The dollar hit lifetime lows versus the euro today beyond $1.53 as investors looked to the European Central Bank's interest rate decision.
Although the ECB is seen holding interest rates steady at 4 per cent, all eyes are on bank president Jean-Claude Trichet for hints of a shift in policy that might provide respite for the greenback's broad fall.
The dollar's decline has been exacerbated by weak US economic data and worries about a recession, which has galvanised the US Federal Reserve to cut borrowing costs sharply to 3 per cent, with further easing expected to come.
The euro's latest rally has already prompted some concerned comment from policymakers. Investors will scan Mr Trichet's remarks to see if he echoes those.
By 9.32am, the euro had risen as high as $1.5345, the highest since the single currency's inception in 1999.
The dollar struck an all-time low against a trade-weighted basket of major currencies, with the dollar index falling as low as 73.119.
The US currency also fell 0.6 per cent to 103.33 yen.