The dollar fell to a record low against the euro and the dollar index on Wednesday despite a report which showed U.S. service industries contracting less than expected.

The Institute for Supply Management's non-manufacturing index rose to 49.3 from a 44.6 in January. Figures above 50 indicate expansion while scores below indicate contraction. A poll of 64 economists had anticipated a median reading of 47.3, according to Bloomberg.

Meanwhile, the latest reading of the dollar index, which compares the dollar to 16 major currencies, fell to a new low of 73.371.

The dollar fell as low as $1.5303 per euro only to pull back to $1.5284 per euro at 1:14 p.m. in New York. Meanwhile, the yen fell against the 16 most traded currencies following the report.

The dollar fell in earlier trading after the ADP Employer Services report showed that 23,000 were laid off or lost their jobs in February, more than expected. Analysts expected a loss of 18,000 jobs.