The US dollar is knocked to record lows against the euro and some other key currencies on February 26, Tuesday, after a Federal Reserve official signaled additional interest rate cuts and weak data intensified worries over the country's ailing economy.

Adding to the dollar's miseries was news that German corporate sentiment surprisingly increased this month. This suggested that the European Central Bank (ECB) was not likely to ease near-term monetary policy, leaving investors riveted on interest rate differentials between the US and the euro zone. The Fed has lowered 2.25 percentage points on its benchmark overnight lending rate to 3 percent since mid-September, while the main refinancing rate of ECB has been kept at 4 percent.

According to Reuters. the euro skyrocketed to an all-time high of $1.4982, beating the previous $1.4966 record in November 23 of last year. On the other hand, the dollar index plunged to its lowest in history of 44.706 DXY, surpassing the previous record sink of 74.753 tested on November 27.

But the euro isn't the only one. The high-yielding New Zealand and Australian dollars also hammered the US dollar. The Aussie dollar rose 0.7 percent to USD 0.9327. The New Zealand dollar set a 23-year post-float high record versus the US dollar climbing 0.4 percent to US$0.8145. The Swiss franc almost made history again, coming close to touching a record high (CHF 1.0755 = USD 1). If you enjoy learning this article, you'll surely be interested in reading how to day trade.