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Dollar Falls to Fresh Low Ahead of Fed Meeting

The dollar slipped to record lows against the euro and a basket of currencies Friday as investors, faced with a run of weak U.S. economic data, anticipate a Federal Reserve interest rate cut next week.

Dollar and Euro
Dollar and Euro

U.S. crude oil's rise to record highs above $92 a barrel and gold's climb to 28-year peaks also hurt the dollar, while boosting the currencies of commodity-rich countries.

"The U.S. central bank outlook is for a 50 basis point cut by the end of the year," said Brian Taylor, senior currency trader at M&T Bank in Buffalo, New York. "Even if they only do 25 basis points here (in October), the feeling is they will do another 25 basis point cut in December."

The euro rose as high as 1.4393 against the dollar before surrendering some gains to change hands at 1.4382, according to Reuters data. The dollar index fell as low as 76.980 and last traded at 77.030.

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