The world dumped the dollar on Thursday, pushing it to an all-time low of $1.40 against the euro and to parity with the Canadian dollar for the first time in three decades as currency traders around the world digested the full implications of the Federal Reserve’s new course for interest rates.

The European Central Bank signaled Thursday that it would raise interest rates in September to curb inflation amid an expanding economy. Its president, Jean-Claude Trichet, also vowed to pay “great attention” to volatile developments in global financial markets.