Dollar Falls to Record Low Versus Euro as Fed Signals Rate Cuts
March 1 (Bloomberg) — The dollar fell to the weakest ever against the euro and to a three-year low versus the yen after Federal Reserve officials signaled they will keep cutting interest rates to support the economy.
The U.S. currency dropped 2.4 percent this week against the euro, the most since December, after Fed Chairman Ben S. Bernanke said he “will act in a timely manner” to spur growth and cited the weaker currency’s role in improving the trade deficit as a “positive” for the economy. The U.S. Dollar Index, which tracks the currency against six major counterparts, sank to the lowest since its start in 1973.
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