forex Ailing dlr sinks to new record lows

While U.S. rates are seen as falling by at least 75 basis points this month FEDWATCH, European Central Bank president Jean-Claude Trichet said there was no discussion of cutting rates from 4 percent at a rate setting meeting on Thursday.

He also declined to refer to the euro's rise as "brutal", simply saying that excessive volatility was bad for economic growth and that U.S. had a strong dollar policy.

"There's broad dollar weakness and Trichet's language was not threatening enough for dollar bears to think that there might be intervention from the ECB, giving the green light to sell the dollar," said Audrey Childe-Freeman, European economist at CIBC World Markets.

The euro rose to $1.5429 according to Reuters data, the highest level since its launch in 1999 and bringing its gains since the start of the year to over 5 percent .

The dollar fell to an all-time low against a trade-weighted basket of major currencies at 72.666 .DXY and against the Swiss franc hit a low of 1.0185 francs . It has now lost over 10 percent versus the low-yielding, safe haven Swiss currency since the start of the year. It also set a 3-year low at 101.82 yen .