The dollar took another beating earlier today, dropping to record lows against the euro, the Swiss franc and a basket of currencies because of a growing view that the U.S. Federal Reserve will cut interest rates again next month.

Traders said low liquidity in the holiday-thinned market exaggerated currency moves and prices could remain volatile for the rest of the day. U.S. markets were closed yesterday forThanksgiving and Japan's markets are closed today for a national holiday. The yen hit a 2-1/2-year peak against the dollar as investors, worried about the fallout from credit market problems and the impact on the broader economy, remained averse to risk, even though stock markets stabilised after several days of falls.

"It is just a continuation of a recent (dollar-selling) trend, and low liquidity," said the head of currency trading at a European bank in Singapore.

The euro was trading around $1.4920, up 0.45 percent on the day, having earlier hit a record high of $1.4968 on the electronic trading system EBS. The trading desk head said the dollar's move lower was mostly technically driven as stop-loss orders to sell the greenback were triggered one after another. The dollar index, which measures the dollar's value against a basket of major currencies, was at 74.680 after slumping to a record low of 74.484.

The dollar was down 0.6 percent against the Swiss franc at 1.0937 franc, bouncing up a little from a record low of 1.0889franc on EBS struck earlier in the session. It was down 0.7 percent against the yen at 107.80 yen,after dropping as low as 107.55 yen on EBS, the lowest sinceJune 2005.