Wednesday saw the dollar dip near to an all-time low against the euro as more poor economic data from the US reached the markets.

London trading saw the dollar drop to 1.3898 per euro from 1.3904 late Tuesday, according to Bloomberg figures.

On Tuesday the dollar at one point touched a record low of 1.3914.

Jonathan Cavanagh, a strategist at Westpac Banking, told the news agency that "the dollar is likely to continue falling with the potential rate cut in the US".

He was referring to a decision by the federal reserve to cut borrowing rates in the US, a move that many feel is likely to occur in the coming weeks.

The US economy has been hampered by fallout from the subprime mortgage meltdown and also by data released last week that showed job losses in August.

It was the first time that there had been job losses recorded in official US government data since 2003.