The dollar tumbled to yet another record low point against the European single currency on Thursday.

In early trade, the euro jumped as high as 1.5345 dollars, extending record gains after hitting 1.53 dollars for the first time on Wednesday.

The euro has been on a record breaking run for weeks, topping 1.50 dollars on February 26, as players sell down the dollar amid concerns about the outlook for the US economy and interest rates.

Dealers said that while the US Federal Reserve has cut interest rates sharply -- and promised to do so again -- in an effort to get the US economy back on track, the markets are growing worried that that may not work.

The idea that lower interest rates might not be enough to bolster growth is beginning to gain ground, said Thomas Stolper, analyst at Goldman Sachs.

Hit by a stream of constantly weaker data in the fallout from the collapse of the US housing market, the dollar is likely to continue under pressure, dealers said.

They said the prospect that the European Central Bank, fearful of inflation, will keep interest rates on hold at 4.0 percent underpins the strength in the euro.

Both the ECB and the Bank of England hold policy meetings Thursday but they are widely expected to leave interest rates on hold, dealers said.