The dollar tumbled to a record low against the euro on Thursday and reached parity with the Canadian currency for the first time in 31 years on expectations of more cuts in U.S. interest rates after this week’s sharp reduction.

The sell-off started in Europe and continued later in the day in New York as investors and analysts concluded lower benchmark rates in the world’s largest economy will hurt the return on dollar-denominated assets, diminishing the greenback’s appeal.

Against the euro, the dollar breached the key $1.40 level and almost touched $1.41 at around noon in New York. The euro zone single currency also rose above 70 pence against sterling for the first time in one and a half years.

Also on Tuesday, the Canadian dollar briefly reached parity with the U.S. dollar for the first time since 1976, supported by lofty commodity prices, a strong domestic economy and concerns about the U.S. economic slowdown.

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