Skip navigation
Watchlist Sponsored By :


Current DateTime: 11:32:03 25 Nov 2009
LinksList Documentid: 24355697
  • Runway Angels

      The superbowl of fashion shows, models walk down the runway at the 2009 Victoria's Secret Show.

  • Smartphone Guide

      Here's a need-to-know guide to nine devices, based on features, price, network and platform.

  • Wines for the Holidays

      Not quite sure what wine to pair with Turkey or Creme Brulee? Our experts do.

FEATURED QUIZZES


Current DateTime: 11:32:03 25 Nov 2009
LinksList Documentid: 33793611
  • How Well Do You Know Your Bird?

      Let's talk turkey. Test your turkey knowledge and perhaps pick up a bit of trivia to trot out at your holiday meal.

  • A Healthier & Wealthier You

      Take the following quiz and find out how much you know about the impact of obesity on the health of the U.S. economy.

  • The Billionaire BFF's

      Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?


Current DateTime: 11:32:03 25 Nov 2009
LinksList Documentid: 24890560
  • Winterizing Your Portfolio

      If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.

  • Investor's Guide to Real Estate

      Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.

  • Alternative Investing

      Stocks and bonds? Sure. But it's a big world out there for investors.

powered by digg
Dollar Hits Record Low Against Euro After Fed Cut
By: Reuters | 18 Sep 2007 | 03:23 PM ET
Text Size

The dollar fell to a record low versus the euro on Tuesday after the Federal Reserve cut its key interest rate by an aggressive half a percentage point to prevent the U.S. economy from weakening further on turmoil in the credit and housing markets.

Policy-makers reduced the benchmark lending rate between banks by the most since November 2002 to 4.75 percent, the lowest level since May last year. It was the first rate cut in four years. The Fed also lowered the discount rate it charges for direct loans to banks by a half-point.

Traders sold the dollar as lower rates make U.S. dollar-denominated assets less attractive. Financial markets had widely expected the Fed to lower overnight borrowing costs by at least 25 basis points, but were split over whether the move would be a more aggressive half-point.

Fed's Decision Rocks Foreign Exchange:

"A 50 basis point cut in the funds rate and the discount rate is a brave opening gambit in the easing cycle from a Fed chairman that for credibility reasons was expected to err on the side of caution," said Alan Ruskin, chief international strategist at RBS Greenwich Capital, in Greenwich, Conn.

He said the move will also cause some to question the Fed's inflation-fighting credentials.

Against the dollar, the euro [$$EURUSD  Loading...      ()   ] was 0.7 percent higher to trade at $1.3962, after earlier trading at a record high of $1.3977. The dollar pared some of its early gains against the yen [$$USDJPY  Loading...      ()   ] to trade at 115.70 yen.

"Today's action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time," the Fed said in a statement outlining its decision.

Omer Esiner, a market analyst at Ruesch International in Washington, said, "The accompanying statement sounds a somewhat cautious tone, pointing out the Fed is a bit more worried about the fallout from the recent financial market turmoil."

The dollar fell nearly 1 percent against the Canadian dollar to trade at 1.0164, a 30-year low. Some analysts said recent oil price highs above $80 and lower U.S. interest rates may soon push the greenback to parity with its Canadian counterpart, a level last seen in 1976.

The high-yielding New Zealand dollar also rose 2 percent to $0.7205, while the Australian dollar was up 1.8 percent at $0.8490.

Copyright 2009 Reuters. Click for restrictions.
Tools:
Print EmailAdd This share icon
  • digg share

CNBC HIGHLIGHTS

  • For nearly three decades, these on-call experts have been dishing advice on how to – and not to – cook turkey.
  • Eric Schmidt pledges to create a virtual copy of the Iraq National Museum at Google’s expense.
  • Bill Griffeth is taking a leave of absence from CNBC and Power Lunch for a year. Here's a message from Bill.
  • More shoppers than ever plan to comparison-shop this season. Who will benefit?
  • It may be the most unusual guide to business you'll read.
  • Cut Credit cards
  • How can you get out of debt and back on the road to recovery? Follow these ten steps.
ADD COMMENTS
Remaining characters


Current DateTime: 10:38:03 25 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 10:38:03 25 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 10:38:03 25 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 10:38:03 25 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters