The dollar fell to a record low of $1.55 per euro as firms from Citigroup Inc. to Goldman Sachs Group Inc. said the Federal Reserve’s plan to bring $200 billion into the banking system may fail to boost money-market lending, Bloomberg reported.

The U.S. currency erased more than half of yesterday’s 1.6 percent rally versus the yen, which came after the Fed said it would extend $200 billion of credit to financial institutions. Traders bet the Fed will cut its benchmark interest rate by as much as three quarters of a percentage point next week to avoid a recession; the European Central Bank has kept borrowing costs unchanged.

The dollar fell to $1.5504 per euro, the weakest since the euro’s 1999 debut, and traded at $1.5484 at 10:19 a.m., from $1.5338 yesterday. The previous historical low was set yesterday. U.S. currency dropped to 102.67 yen from 103.42, within 1.5 yen of an eight-year low. The euro rose to 158.95 yen from 158.61.

Euro gains were limited after Luxembourg Finance Minister Jean-Claude Juncker said he is “very vigilant” on the euro in current circumstances and that exchange rates should reflect fundamentals. He spoke to reporters in Brussels, Belgium.

The euro extended its gains against the dollar earlier after a European Union report showed that industrial production in the region rose for the first time in three months in January. It increased 0.9 percent from the prior month, more than twice the rate forecast by economists surveyed by Bloomberg. The euro also rose on speculation that ECB President Jean-Claude Trichet will highlight inflation risks today at a press conference. The ECB’s main rate is 1 percentage point above the Fed’s 3 percent target rate for overnight loans between banks.