"We think the dollar will bottom relatively soon," said Steve Englander, chief foreign exchange strategist for the Americas at Barclays Capital.

Tom Levinson, a foreign exchange strategist at ING, said:

"I don't think they can afford to raise interest rates," said Jeremy P. Fand, senior foreign exchange strategist at BankBoston.

Jeremy P. Fand, senior foreign exchange strategist at BankBoston, said he expected the euro to rally in the short term.

Koji Fukaya, chief foreign exchange strategist at Credit Suisse said:

"This has been about the craziest day my colleagues and I have ever seen," said Jeremy Fand, senior foreign exchange strategist at BankBoston.

"That is a sign of fiscal imprudence," said Jeremy Fand, senior foreign exchange strategist at BankBoston.

"One thing I would emphasize is how little we know," said Steven Englander, chief foreign exchange strategist for the Americas at Barclay's Capital.

Paul Podolsky, chief foreign exchange strategist at Fleet Global Markets in Boston, said that the euro could begin to fall again later this year.

Jeremy P. Fand, senior foreign exchange strategist at BankBoston, said the dollar's fall came in light trading.