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The U.S. dollar reached a new historical minimum against the euro today; it also fell below the 12-year old minimum level against the Japanese yen on the expectations of the more interest rate cuts from the Fed.

The record on EUR/USD was broken yesterday when it reached 1.5571 after even Bush’s speech about a strong national currency preference couldn’t help combat the pessimistic expectations regarding the U.S. economy’s future.

12-year old minimum on the USD/JPY at 100.00 yens per dollar was broken today, as the currency pair reached 99.75 level. The last time the dollar was so cheap against the yen was in October 1995. Japanese monetary authorities may now start watching yen’s Forex performance closely, because such a fast appreciation can’t benefit Japanese economy at all.

There is a high probability that the Federal Reserve will cut the interest rate by 75 basis points next Tuesday on March 18, while almost every market analyst is sure that the rate will be cut by at least 50 basis points.

The EUR/USD reached 1.5626 at 9:10 o’clock GMT today and is now trading at 1.5592 as of 9:28 GMT. USD/JPY is currently trading at 100.16 after reaching its record bottom.

South Korean won was among the other Forex traded currencies that triumphed over the U.S. dollar during this week as the USD was losing its ground on many areas. But today USD/KRW corrected from its almost two-month bottom.

The current account deficit in South Korea is seen as one of the most important monetary problems recently and while the dollar is losing because of the widening interest rate difference, the demand for the dollars in Korea is still very high.

Bank of Korea along with the major market analysts predict a further increase in the national current account deficit, based on the soaring oil prices and a decline in a global demand for the Korean goods. The South Korean deficit of the current accounts in January was at its highest value since 1997.

USD/KRW is trading at 938.25 as of today 10:01 GMT. It closed at 935.24 yesterday and is now showing more than 0.3% gain, even when the U.S. dollar is experiencing losses against the other world currencies.