The dollar stumbled to fresh lows against the euro and pound on Friday with little economic news to distract currency traders from the struggling U.S. housing market.

The rupee appreciated further by about three paise against the US dollar in early trade on strong equity markets coupled with weakness in dollar overseas.

When the U.S. Federal reserve chairman, Ben Bernanke announced on Tuesday that a slowdown in housing construction would remain a drag on economic growth "somewhat longer" than expected, the dollar exchange rate dropped against the euro immediately.

India has joined the elite club of 12 countries with a trillion dollar economy, thanks to the continuing rally in rupee against the US dollar as the country's GDP crossed the trillion-dollar mark for the first time in history.

The dollar dipped slightly in Asia Friday on expectations that a weekend meeting of finance officials from the Group of Seven industrialized economies won't focus on the slipping yen.

Economic growth in the United States has slowed in recent quarters, reflecting in part the economy's transition from the rapid rate of expansion experienced over the preceding years to a more sustainable pace of growth. Real gross domestic product (GDP) rose at an annual rate of roughly 2 percent in the second half of 2006 and appears to be expanding at a similar rate early this year.

Iran is planning to stop using the U.S. dollar to price oil, with less than half of its oil income now paid in the U.S. currency, Iran's central bank governor said.