The dollar slumped to a fresh record low against the euro and below 100 yen today on mounting fears of a US recession, driving gold to an all-time high of $997.10 an ounce.

The euro struck a record-high $1.5625 while the dollar slid to 99.78 yen - the lowest point since November 1995. After reaching a new peak, the euro stood at $1.5570 this evening.

As the US currency tumbled, investors seeking safe havens pushed oil and gold to fresh historic highs, while the Swiss franc was close to parity with the dollar.

The US unit remained on the backfoot despite Tuesday's move by  the US Federal Reserve to inject $200 billion into money markets aimed at easing the global credit crunch.

Many analysts now expect the Fed to cut its key lending rate by  as much as 75 basis points next week.

US President George W. Bush said the weakness of the dollar was 'not good tidings' and repeated that he backed a stronger US currency. But the remarks fell on deaf ears in the market, where many  players believe that Washington is comfortable with a weaker dollar  because it helps exporters.

Meanwhile, the chairman of the Eurogroup of finance ministers Jean-Claude Juncker said today that Europe is stepping up its 'vigilance' to sharp and unwelcome swings in currency rates.

'I don't think we should start to become hyperactive,' Juncker told journalists when asked how Europe should react to the euro's record-breaking run on currency markets.

'We have to watch closely what's happening and we are increasing our vigilance,' he added.