The dollar hit a fresh three-month low against the euro after today's key US October employment report, although better than expected, pointed to stalled job growth and muddled expectations of a near-term interest rate cut.
The jobs data, which showed the unemployment rate rose to 5.7 per cent from 5.6 per cent in September, added to a recent string of dismal US economic data that made analysts predict the Federal Reserve will trim the 1.75 per cent Fed funds rate at its November 6th meeting.
The euro rose to a fresh two-month high of $1.0003 cents, a gain of 0.9 per cent compared with yesterday's New York close.
Another key economic indicator - the Institute for Supply Management report - is forecast to show US manufacturing activity down, with the index seen dropping to 48.9 from 49.5 the previous month.
This week's weak economic data has raised expectations the Federal Reserve will cut interest rates as early as next week.
The Fed has kept rates steady so far this year after cutting 11 times in 2001 to a four-decade low of 1.75 per cent.