Speculation that the US Federal Reserve could be about to launch a second phase of quantitative easing (QE), creating billions of dollars to reignite the world's largest economy, pushed the US currency down to a 15-year low against the yen today.

Investors fear that a possible massive programme of bond purchases by the Fed will flood the financial system with dollars, eroding the dollar's value.

The dollar fell 0.8% against the euro, trading at $1.40, and 0.4% against the yen, changing hands at less than ¥81, the lowest level since 1995.

The Australian dollar, backed by the growing strength of the country's abundant commodities, such as iron ore and coal, edged ever closer to parity with the dollar, touching an all-time high of $0.994.