Dollar hits record low against the euro: Reuters

THE euro hit a record high against the dollar today benefiting from the latest crisis in the American financial sector.

The single currency rose to 1.6038 dollars according to Reuters. Around 9:25 GMT, it traded around 1.6020 dollar. The previous record of the euro, registered on April 22, was 1.6018 dollar.

The dollar's slump came just two days after the U.S. government had tried to restore confidence with a rescue package for mortgage agencies Freddie Mac and Fannie Mae.

The dollar's record low versus the euro poses additional problems for the central bank chief who is trying to balance inflationary pressures exacerbated by a weak currency with a slowing economy.