Greenback, pound see declines

The US dollar saw declines on Monday after a weekend cut in the discount rate by the US Federal Reserve, after JPMorgan Chanse (NYSE: JPM; TYO: 8634) bought Bear Stearns (NYSE: BSC) for a tenth of its March 14 value, on bets that the Fed will cut its main interest rate by at least 1 percent on Tuesday, and on a decline in New York region manufacturing in March.

At just before noon in New York the dollar was trading at $1.5749 to the euro after dropping to $1.5903, a new low, earlier while it also touched a new low versus the Swiss franc at SFr0.9638 to the dollar while before trading at SFr0.9865 around midday in New York.

The greenback was also lower in relation to the yen, dropping as low as ¥95.76 before trading at ¥97.1650 at just before noon.

The pound also weakened, on the session on fears that the credit crisis will slow demand for high-yielding currencies and ahead of a report due Tuesday that will show inflation was up in the UK again in February.

At midday in New York it took $2.0073 to buy a pound while the UK currency was at 78.46p to the euro after earlier trading at 79.12p to the shared currency.

The Australian and New Zealand dollars also declined on worries that the demand for high-yield currencies will fade, with the aussie trading at A$1.0868 to the dollar and the kiwi at NZ$1.2462 to the dollar in midday trade in New York.

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