The US dollar traded at a record low against the euro on Thursday, following negative reports about the country's mortgage market, it has been claimed.

AFP reports that the euro reached 1.4065 dollars at 21:00 GMT, having earlier achieved a high of 1.4098.

Meanwhile, the dollar traded at 114.63 yen and the European single currency also fell, sinking to 161.25 yen.

According to the news provider, the weakness in the US currency was largely attributed to comments made by Federal Reserve chairman Ben Bernanke.

Speaking to Congress, Mr Bernanke suggested the sub-prime mortgage crisis was likely to have had a more profound impact on the economy than first thought.

However responding to Mr Bernanke's comments, Kevin Logan, an economist at Dresdner Kleinwort in New York, said the chairman had given a "broad hint" that the market may have "righted itself" by March next year, the Times reports.