From the Financial Times:

"We continue to see the subprime and credit concerns as a US, rather than global issue," said David Woo at Barclays Capital. "As such we expect broader dollar weakness to remain the key theme in the foreign exchange markets this week."

The dollar fell to an all-time low low of $1.3844 against the euro, before recovering to stand little changed on the session at $1.3825 by midday in New York. Meanwhile, the pound hit a 26-year high of $2.0603 against the dollar, before easing back to stand at $2.0580, still up 0.1 per cent on the session.