The dollar was back under pressure with concerns about a crisis in the US banking sector mounting. To some extent, a warning from the Bank of England governor Mervyn King today that the banking sector is not yet out of the woods spooked the market after the high profile write-down, to the tune of 8-11 bln usd, at US financial giant Citigroup over the weekend had left markets nervous. These factors ended up weighing on the dollar, with a fresh record low against the euro set today, at 1.4532 usd. "Concerns over the credit squeeze continue to weigh on trader confidence in the greenback," said James Hughes at CMC Capital Markets. "Any additional corporate earnings write downs from the sub-prime crisis during the summer would be expected to weigh on the dollar too," he added. But while the fallout may yet continue, the extent of damage this time around may not be as bad, according to some analysts. "While the work through of credit market related losses for major, mostly US, banks is not a pretty sight, we do not expect it to prompt systemic dislocation on the scale of late July/August," said Steve Pearson at HBOS. He noted that the liquidity conditions are not "flashing red" and that short term rates have not risen as far as they did in August. Separately, the dollar got no favours from euro zone data showing the area's services sector picked up in October, with the purchasing managers' index revised up to 55.8 from the provisional estimate of 55.6. "Companies seem to be less bothered about the impact of the stronger euro and higher oil prices," said David Brown at Bear Stearns. The pound also gained on the hapless dollar as players ignored a weak retail sales survey of British high streets. Elsewhere, the yen was stronger amid expectations that the Bank of Japan will keep interest rates steady for the rest of the year while the Aussie and Kiwi dollars along with the South African rand were higher on the back of strong gold prices.