FOREX-ECB eyed as euro hits record high beyond $1.53

LONDON, March 6 (Reuters) - The dollar hit lifetime lows versus the euro on Thursday beyond $1.53, with investors looking to the European Central Bank's interest rate decision and news conference later for fresh signals on monetary policy.

While the ECB is seen holding interest rates steady at 4 percent, all eyes are on the bank's president, Jean-Claude Trichet, for hints of a shift in policy that might provide respite for the greenback's broad fall.

The dollar's decline has been exacerbated by weak U.S. economic data and worries about a recession, which has galvanised the U.S. Federal Reserve to cut borrowing costs sharply to 3 percent, with further easing expected to come.

The euro's latest rally has already prompted some concerned comment from policymakers. Investors will scan Trichet's remarks to see if he echoes those.

"There are fears (Trichet) may comment on the euro's rise. If he says anything about sharp or brutal moves or that he's not happy with the euro's strength, it could lead to a fall in the euro," said Antje Praefcke, currency strategist at Commerzbank Corporates & Markets in Frankfurt.

By 0932 GMT, the euro had risen as high as $1.5345, the highest since the single currency's inception in 1999 .

The dollar struck an all-time low against a trade-weighted basket of major currencies, with the dollar index falling as low as 73.119 .DXY.