The value of the U.S. dollar fell to a record low against the euro Wednesday and hit a 26-year low compared to the British pound.

During the day's trading, the euro rose to nearly $1.3784 before settling back.  The pound rose to slightly to $2.0351.

Traders said they sold dollars on concerns that problems in the U.S. housing market could slow American economic growth.

Investors were encouraged to buy pounds by speculation that the British central bank may raise interest rates, which would boost the return on some investments in that currency.

Some information for this report was provided by AFP, AP and Reuters.