Dollar falls to euro after US rate cut

The US Federal Reserve voted, by a margin of 8 to 1, to cut its main interest rate to 3.5 percent from 4.25 percent on Tuesday, sending the dollar lower versus the euro and most other major currencies.

The Fed hadn’t been scheduled to meet until 29 – 30 January, and some analysts expect that it will cut interest rates again then.

The last time the Fed issued a rate decision between regular meetings was in September 2001.

The dollar dropped to $1.4615 to the euro by just before 2 p.m. in New York, while it traded at $1.9612 to the pound at the same time.

The Swiss franc gained the most versus the greenback in a week to SFr1.0990 to the dollar.

The greenback did manage to gain versus the yen, to ¥106.7650 to the dollar in afternoon trade in New York.

Story link: Dollar falls to euro after US rate cut