The euro and the pound both rose strongly on Thursday against the dollar after the Federal Reserve's decision to cut US rates to 1% on Wednesday.
The euro rose to $1.315 against the dollar in morning trading, compared with $1.285 on Wednesday night.
The pound rose to $1.661, up from $1.631 on Wednesday night and almost 14 cents higher than last Friday's six-year low of $1.526.
Despite the rate cut, the dollar edged higher against the yen, to 98.52 yen.
The rate cut ensures that "the dollar remains under pressure, at least in the short term", said Gary Thompson, head of sales trading at CMC Markets.
The rally may be short-lived, however, as both the European Central Bank and the Bank of England are expected to cut interest rates next week.
Interest rate cuts make currencies less attractive, as they reduce the rate of return for investors.
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