The dollar fell to record lows against the euro and basket of currencies Tuesday on worries over the health of the U.S. economy and prospects of more Federal Reserve interest rate cuts.
The euro surged to $1.4982 , according to Reuters data, beating the previous all-time peak of $1.4966 touched on Nov. 23. The dollar index, which tracks the greenback's performance against six major currencies, also touched a life-time low of 74.706 .
The dollar's slide accelerated after Federal Reserve Vice Chairman Donald Kohn said risks to US economic growth were a bigger worry than inflation, suggesting further Fed interest rate cuts.
The euro rose to a session high of $1.4914, versus $1.4902 before Kohn's comments. Against the yen, the dollar fell to 107.60 yen, a decline of 0.4 percent on the day.
The dollar drop was a continuation of an early move down against the euro and yen Tuesday as U.S. economic reports left the outlook for U.S. interest rate cuts unchanged.
Data showed U.S. consumer confidence dropped in February to a 17-year trough. That
compared with a firmer German sentiment survey earlier in the global session that dampened the case for euro zone interest rate cuts.