Another new record low for USD versus euro

The US dollar fell to another record low in relation to the euro on Tuesday, falling to $1.4570 to the euro in Tuesday morning trade in New York on worries that subprime losses will grow and that the Federal Reserve will cut interest rates again before the end of the year.

At just before 1 p.m. New York time, the dollar was trading at $1.4555 to the euro, while the yen stood at ¥114.4700 to the dollar.

Sterling, meanwhile, strengthened to a 26-year high versus the greenback on the possibility that while the Fed could cut rates again, the Bank of England will hold UK interest rates steady.

At one point in the session in London, the dollar was at $2.0907 to the pound while it was at $2.0855 to the pound in early afternoon trade in New York.

However, sterling dropped to 69.79p to the euro in New York trade.

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