Dollar Falls on Interest Rates cut
Thursday, 09 October 2008

AP, NEW YORK -- The dollar fell against the other major currencies as the Federal Reserve and other central banks around the world cut interest rates in an effort to counteract a global financial meltdown.

The Fed cut its key rate to 1.5 percent from 2 percent. The Bank of England and the European Central Bank also sliced their rates by half a point, to 4.5 percent and 3.75 percent, respectively.
 
The central banks of China, Canada, Sweden and Switzerland also lowered their key rates.
 
On Wednesday, the 15-nation euro rose to $1.3695 early in New York from $1.3645 late Tuesday. The British pound edged up $1.7536 from $1.7510.
 
The dollar dropped to 100.86 Japanese yen from 101.71.
 
Cutting interest rates can stimulate economic growth and help restore confidence to markets. But doing so may undermine a currency as investors look for better returns elsewhere. The U.S. rate is now the second-lowest among the majors, higher only than Japan.
 
In other New York trading, the dollar fell to 1.1041 Canadian dollars from 1.1058, and slipped to 1.1340 Swiss francs from 1.1378.

Comments Add New
Write comment
Name:
Email:
  We don't publish your mail. See privacy policy.
Title:
Please input the anti-spam code that you can read in the image.