The dollar gained on the euro after falling to record lows on Tuesday but expectations that the Federal Reserve may cut interest rates this week could lead to a fall once again.

The Federal Reserve is widely seen as moving to cut its benchmark overnight lending rate for banks and financial institutions from 4.75 percent to at least 4.50 percent. The outlook for a cut comes amid continuing signs of trouble in the housing markets and company earnings reports showing billions in losses due to tight credit markets and an ongoing housing downturn.

A half point drop could prompt concern among dollar investors that the U.S. economy is in a dire situation, triggering further falls in the dollar.

The dollar rose to $1.4403 against the euro after reaching an all time low versus the euro of $1.4439 on Monday.

The was flat versus the yen at 114.50 yen. The Australian dollar fell to $0.8187 from $0.9272 on Monday. Against the Canadian Dollar, the dollar rose to C$0.9543 versus C$0.9515 a day earlier.