Rate cut sends greenback lower

The US Federal Reserve announced Tuesday afternoon that it had cut the main interest rate by 0.5 percent to 4.75 percent, the first time it has been reduced in over four years.

The rate cut sent the US dollar to a new all-time low of $1.3964 in relation to the euro, and even with later gains it was still 0.5 percent lower by mid-afternoon in New York to $1.3940 to the euro.

While the greenback dropped 0.6 percent to $2.0080 against sterling and fell 0.8 percent to C$1.0190 versus the Canadian dollar, a new 30-year low, but it added 0.8 percent to ¥115.95 versus the yen.

The UK currency was also lower for a time, dropping to a year-and-a-half low in relation to the shared currency at £0.6973 before taking back to loss to manage a gain of 0.1 percent versus the euro to £0.6942

The yen was 1.2 percent lower to ¥82.23 in relation to the New Zealand dollar, while it dropped 1.3 percent to ¥161.60 against the euro and was down 1.6 percent to ¥233.05 versus sterling.

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