Dollar dives to record low against euro before Fed decision

LONDON - The dollar tumbled Wednesday to another record low against the euro on growing speculation that the US Federal Reserve will cut American borrowing costs later in the day.

By (AFP)

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Published: Wed 31 Oct 2007, 4:43 PM

Last updated: Sat 4 Apr 2015, 11:31 PM

The euro leapt to an historic 1.4467 dollars in early European trading, which beat the previous record 1.4441 that was set in New York on Tuesday.

Most analysts expect the Fed will trim its benchmark interest rate by a quarter point to 4.50 percent later Wednesday to cushion the US economy from a housing slump and a related credit crunch.

The greenback has also slid against other currencies, including the British pound and the Australian and Canadian dollars, ahead of the anxiously-awaited Fed rate call.

Earlier Wednesday, the pound surged as high as 2.0743 dollars—the highest level since the second quarter of 1981.

Six weeks ago, the Fed slashed its federal funds rate by a half point to 4.75 percent to ease financial market distress stemming from a crisis in the US subprime or high-risk mortgages sector.

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