FACTBOX: Weak U.S. dollar's impact on other assets

NEW YORK (Reuters) - The U.S. dollar plunged to a record low against the euro and dropped below 99 yen on persistent worries about global financial turmoil and U.S. recession concerns.

It has also fallen to an all-time low against a basket of currencies and touched parity with the Swiss franc for the first time ever.

Here are some implications of the dollar's decline:

* The dollar's sharp depreciation established an inverse correlation between the greenback and commodity prices. Investors are seeking to hedge against the dollar's steep fall by buying commodities such as gold and oil, pushing their prices to record highs.

* Given that oil is denominated in dollars, the sharp fall in the value of the greenback has made oil cheaper for non-U.S. consumers, fueling a surge in demand and in turn pushing the price of oil even higher.

* The United States is a major importer of oil and surging oil prices are feeding through to domestic gasoline prices and adding to growing inflationary pressures.

* The dollar is losing some of its luster as a reserve currency. Some central banks are diversifying their foreign- exchange reserves in favor of the euro. OPEC's second-largest producer Iran has asked for payments in euros and yen, rather than dollars.

* Imports, such as luxury cars, have become more expensive, while U.S. exports have become relatively cheaper, which should boost domestic production and therefore economic growth. This is helping reduce the United States' huge trade deficit, one of the factors behind the dollar's decline.

* The weaker dollar can discourage foreign investors from buying U.S. assets, such as bonds and equities. It can also lead to domestic capital outflows as Americans invest overseas, adding to further pressure on the greenback.

* The weak dollar makes U.S. companies cheaper to foreign firms looking to expand in the United States. At the same time, for U.S. companies looking to broaden their reach overseas, the weak dollar raises the price of potential takeover targets.

Following are recent milestones in the dollar's decline against the euro and the yen:

* March 14, 2008 - Euro rises above $1.5650 and the U.S. dollar falls to 98.90 yen, the lowest in 12-1/2 years. Later in the session, U.S. investment bank Bear Stearns said it had to secure emergency financing to deal with a deteriorating cash position.

* March 13, 2008 - The yen hits a 12-year high of 99.77.

* March 12, 2008 - Euro rises above $1.55 amid doubts over the effectiveness of the Federal Reserve's efforts to aid stressed credit markets.

* Feb 27, 2008 - Euro trades above the key psychological $1.50 barrier, after Federal Reserve Chairman Ben Bernanke signaled the central bank was ready to cut rates again in the face of mounting risks to economic growth.

* Oct 31, 2007 - Euro climbs above $1.45 after the U.S. Federal Reserve reduced its benchmark overnight lending rate by 25 basis points to 4.50 percent.