By IRNA
New York : The dollar fell to a new record low against the euro on Monday amid continued fears over the state of the US economy and worsening credit conditions.
The US Federal Reserve has cut its emergency lending rate, but the move failed to buoy investor confidence.
At one stage on Monday morning it took $1.5904 to buy a euro.
With giant investment bank Bear Stearns needing emergency funding investors are concerned other banks may follow suit, as the credit crunch claims casualties.
On Sunday the US Central Bank lowered the interbank rate to 3.25% from 3.5%.
As the greenback continues to weaken, investors are opting to place their money in commodities, contributing to the sharp rise in oil prices.
Sweet crude oil climbed to a new high approaching $112 a barrel.