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For the third week in a row, the U.S. dollar declined against euro, as talk by Ben Bernanke (seen in video below) increases the likelihood there will be aggressive measures taken to escape a recession. It dropped by 1 percent on January 10.

"The Fed will act to cut interest rates very aggressively to prop up the economy,'' said Fabian Eliasson, vice president of foreign exchange sales at Mizuho Corporate Bank in New York. "The dollar will suffer from the interest-rate differential perspective."

U.S. Treasury Secretary Henry Paulson added last week that the steps taken to get the economy going will be temporary ones. 

Over a third of the futures contracts (34%) are betting betting the fed will cut the current 4.25 percent overnight loan interest rate down to 3.5 percent by January 30. About 66 percent now say it'll drop by a half-point.

Bernanke on Potential Rate Cuts

Over the next three to six months, Goldman Sachs Group Inc. projects the dollar will continue to fall against the euro, dropping to $1.51. That's in comparison to their last forecast of $1.43.

Others think it's possible the drag of the U.S economy could spread and cause overall global growth to stall. If that's the case, the dollar may not drop as much as believed. In that case, analysts think it'll trade somewhere in the $1.47 range. By the end of the year they project it to be at around $1.40.