The dollar sank to new depths against the Euro on Thursday, the sixth straight trading session of new lows against the currency.
The dollar traded at $1.4189 Thursday, topping the previous record of $1.4162 from Wednesday. The New York Board of Trade's dollar index, which has measured the currency against six other leading denominations since 1973, fell to 78.159, an all-time low.
The dollar has been weaker against the 16 most traded currencies in September.
The dollar rose 0.2 percent to 115.66 yen. The pound sterling rose to $2.0260, up 0.2 percent from Wednesday.
The latest round of drops were triggered by the Federal Reserve's decision last Tuesday to reduce its benchmark Fed funds rate by half a percentage point to 4.75 percent in order to prevent struggling credit and housing markets from spreading the downturn to the broader U.S. economy.
Weaker interest rates while good for the economy, can weaken the dollar as investors take funds to more stable or faster growing investments. As a result of the Fed's move investment beneficiaries have included crude oil, other currencies and bonds.
The U.S. Commerce Department reported a sharp drop of 8.3 percent for new home sales in August to a seasonally adjusted annual rate of 795,000, its lowest level in two years.
The department also released data showing that the U.S. economy is still resilient despite downturns in certain sectors. The nation's GDP grew at a slightly less-than-expected pace of 3.8 percent in the second quarter despite a weak housing market.
The dollar got a brief boost on Thursday when the U.S. Labor Department stated gave some good news for the job market, stating that first-time applications for unemployment benefits dropped by 15,000 to 298,000.