The dollar sank to its lowest levels against the euro since Europe adopted the currency, and came to parity with the Canadian currency on Thursday.
Losses in the dollar jumped after London's Daily Telegraph newspaper citing analysts saying that Saudi Arabia may drop its currency's link to the dollar.
The U.S. currency fell 0.8 percent to $1.4067 per euro at 4 p.m. in New York and earlier reached a record low of $1.4098, according to Bloomberg data. The U.S. currency has lost 6.2 percent this year versus the euro.
The receding dollar sent gold and oil higher as Tuesdays federal reserve cut continued to ripple through global markets.
Spot gold surged to $736.40 an ounce and front-month crude oil futures hit a record $82.55 a barrel. Both commodities are priced in dollars, making them attractive for holders of foreign currencies as the dollar declines.
On Sept. 18 cut its benchmark interest rate half a point to 4.75 percent as to stave off the housing decline and credit woes in the world's largest economy. The action pummeled the dollar, which is now likely to provide lower returns versus other currencies.
The Canadian dollar traded even with its U.S. counterpart for the first time since 1976.
The Dow Jones industrial average was down 20.33 points, or 0.15 percent, at 13,795.23. The Standard & Poor's 500 Index was down 4.48 points, or 0.29 percent, at 1,524.55. The Nasdaq Composite Index was down 4.15 points, or 0.16 percent, at 2,662.33.