The euro fell to the lowest level for almost two years against the dollar, while the British pound plunged to a five-year trough after Bank of England governor Mervyn King warned that Britain was likely entering a recession.
Dealers said the currencies were being pressured by speculation that European central banks will slash interest rates to promote economic growth in the face of the worst financial crisis in decades.
At about 0420 GMT (1120am Singapore time), the European single currency touched a low of US$1.2743 - the weakest since November 7, 2006. In London morning trading, the euro stood at US$1.2897.
In London morning trading on Wednesday, the euro changed hands at US$1.2897 against 1.3073 late on Tuesday, at 128.10 yen , 0.7866 pounds and 1.5021 Swiss francs.
The US dollar stood at 99.24 yen and 1.1638 Swiss francs.
The pound was at US$1.6394 dollars. -- AFP