The dollar sank to a fresh record low against the euro in Asian trading this morning ahead of US employment figures later this week.
The euro struck a new all-time high of $1.4283 at one point before falling back to $1.4238 this evening.
Currency traders were said to be looking ahead to Friday's US employment data for fresh indications of the impact of credit market and housing woes on the economy.
The US Federal Reserve last month slashed its main interest rate by half a point to 4.75% and further cuts could be made to cushion the world's largest economy from problems stemming from the housing market.
The European Commission reiterated concern with the strength of the euro today.
Commission spokeswoman Amelia Torres said recent comments by Economic and Monetary Affairs Commissioner Joaquin Almunia expressing concern about the euro's rapid rise against the dollar were in line with G7 statements on foreign exchange.
'If you read the regular declarations which the G7 has been making since 2003, you will recall they stress that it is undesirable to have excessive volatility of exchange rates, so that is the context for the text and I think developments of the last few days should be seen against that background,' Torres said.
It is against this background that Mr Almunia said he was worried by the current rise in the euro rate, she said.
Torres added that a strong euro had some positive effects for the euro zone, such as offsetting the high price of oil, which is quoted in US dollars.
