Federal Reserve headquarters, Washington DC.

The US dollar fell to a record low against the euro on speculation Federal Reserve Chairman Ben Bernanke and Treasury Secretary Hank Paulson will say in Congressional testimony today that the credit market turmoil is hurting the US economy.  On the New York Mercantile Exchange, the oil price has fallen $8.29 to $136.89 and in London, Brent for August delivery is trading on the ICE exchange at $137.60.

The US currency also fell to the lowest level in more than a month against the Japanese yen and to a 25-year low against the Australian dollar as the focus of investors remains on the bailout of the two government sponsored mortgage giants - Fannie Mae and Freddie Mac - which are responsible directly or indirectly for half of American mortgages. 

The dollar fell to $1.6038 per euro, the lowest since the Euro's launch in 1999, and was at $1.5987 as of 1:40 p.m. in Dublin, from $1.5908 yesterday. The US currency also dropped to 104.61 yen, the lowest level since June 9, from 106.14 yen yesterday. The yen traded at 167.69 per euro, from 168.89 yesterday, when it weakened to 169.75, the lowest since the single currency's debut.

The US currency has lost all the gains it accrued since July 3rd, when European Central Bank President Jean-Claude Trichet said he has ``no bias'' on future interest- rate moves.

Fed Chairman Bernanke is scheduled to  give his semi-annual testimony on monetary policy and the economy before the US Senate Banking Committee at 10 a.m. Eastern time. A separate hearing at the committee with Treasury Secretary Paulson, and Securities and Exchange Commission Chairman Christopher Cox on financial markets, is scheduled for about 11:30 a.m EST.