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The U.S. dollar went off the cliff again, as it fell against 13 of the 16 most-traded currencies in the world.

With the Euro, the U.S. dollar fell to its lowest level since the Euro was instituted in 1999. It plunged to $1.5047 per euro before backing off to $1.4994.

Citing the assumption the Fed will lower rates again to fight off a recession, analysts said you'll see the dollar index eventually fall to a record low; probably within a several week period.

Most project Fed chief Ben Bernanke will be ready to lower interest rates again, even with inflation starting to become a serious factor, as it starts to affect consumers even more soon. Some businesses haven't passed the cost increases on to their customers yet. That's probably going to happen in the near future.

The dollar also fell against the yen, dropping to 107.08 from 107.28 yen.

Against the South African rand, it fell to 7.5165, a drop of 0.5 percent. Against the Taiwan dollar it dropped to a three-year low of 0.6 percent to NT$31.005.

Monetary policy alone cannot salvage US economy

``It's crunch time for the dollar,'' said Yuji Saito, head of foreign-exchange sales in Tokyo at Societe Generale SA, a unit of France's second-largest bank by market value. ``Bernanke may know that monetary policy alone cannot support the slowing U.S. economy.''
 
How the US dollar fared against other currencies:
 
Canadian Dollar closes at highest level in nearly two months

The Canadian dollar rose versus the U.S. dollar on Tuesday and closed at its highest level in nearly two months, backed by another surge in oil prices, with the Canadian government's 2008-09 budget having little impact.

Dollar picked to hit US85c

Inflation risks means Reserve Bank won't intervene, economists warn

The New Zealand dollar, which yesterday hit a new post-float high, is likely to accelerate to US85c to US87c within months or possibly even weeks, bank economists warn.

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Dollar opens above 93 US cents

The Australian dollar opened at a three-month high today, for the second day running, as traders turned their attention to Australia's strong economy amid more bad news from the US.

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Rupee gains 0.35% at 40.05/USD

The Indian Rupee gained 0.35% against the US Dollar on Feb. 26, 2008.

The Reserve Bank of India`s (RBI) reference rate for the US Dollar stood at Rs 39.91 on February 26, as against Rs 40.05 on previous day i.e. Feb. 25, 2008.

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The dollar fell against 13 of the 16 most active currencies before Bernanke testifies to Congress today. A government report will probably show a drop in new home sales, bolstering the Fed's case for cutting its benchmark 3 percent rate. The euro reached a six-week high against the yen as traders bet the European Central Bank will keep its 4 percent rate unchanged in coming months.

It's not all bad

While all of this sound terrifying, some industries will actually thrive because of the falling dollar in the US.

Tourism as theme parks, as far as visitors from other countries go, has increased tremendously. Other tourism related industries like motels will also benefit from this.

Of course on the other side, domestically it could be the opposite, so it's hard to know whether the influx of foreign tourists will make up for the increasingly frugal ways of a growing number of Americans.

Exports should also thrive in this atmosphere, so manufacturing and agriculture could do well also, even with increasing commodity prices. It depends on how far the dollar falls, which isn't near the bottom yet.

Jim Rogers On Kudlow - This is a few months old, so don't listen to the specifics of what Rogers says, but listen to his reasoning behind it: it's excellent. He talks fast so have your pause button ready.

He talks US dollar, other currencies and commodities over the long term.