The dollar teetered within sight of the previous day's record low against the euro on Tuesday as the market remained confident central banks would not stand in the way of the greenback's decline.
Mixed economic news from Japan had little market impact as traders remained fixated on the United States' huge current account deficit and the need for a weaker currency to correct it.
The dollar is on track to notch up its third consecutive year of losses in 2004 and most analysts think its slide is not over yet.
"There is a very strong consensus that the dollar has further to fall," said Joachim Schuetz, chief economist at UBS in Zurich. "In a very thin market, only a few orders have to go through to push the dollar to technically oversold levels."
The euro bought $1.3620 in holiday-thinned early European trade, having risen as high as $1.3640 in Monday's New York session.
The dollar was steady at 103.10 yen as the market digested a warning from Japanese Finance Minister Sadakazu Tanigaki that authorities would monitor foreign exchange markets over the New Year holidays.
Japan has expressed concern about the yen's export-damaging rise against the dollar, but has not conducted large-scale yen-selling intervention since March.