The U.S. dollar fell to a record low on Wednesday amid skepticism that a move by the Federal Reserve to ease a credit crunch will be effective.

The dollar had risen on Tuesday following the Fed's announcement that it would provide up to $200 billion in Treasury securities loans to financial institutions in exchange for mortgage debt collateral.

The dollar fell to $1.5516 per euro at 2:40 p.m. in New York, the weakest since the European currency began trading in 1999, from $1.5338 late Tuesday. The dollar fell to 102.12 yen from 103.42. The euro traded at 158.46 yen from 158.61 yesterday.

ECB President Jean-Claude Trichet - in Mainz, Germany - said again today that he was concerned about excessive currency moves, noting the importance of anchoring prices, according to Bloomberg.

Traders expect the Fed will cut interest rates at its March 18 Federal Open Market Committee.