Dollar mixed as US rate cut talk intensifies

0 Comments | AFP, August, 2007

NEW YORK (AFP) — The euro slipped against the dollar Tuesday after briefly topping the 1.35 level amid speculation the US Federal Reserve would soon cut its key interest rate.

The euro edged down to 1.3463 dollars around 2100 GMT, from 1.3474 dollars in New York late on Monday. It had climbed as high as 1.3521 dollars in European trading on the rumors of a US rate cut.

The dollar declined to 114.41 yen, from 114.86 yen on Monday.

The US central bank's decision Friday to cut its discount rate -- the rate at which it lends to banks that need short-term liquidity -- sparked rumors of an emergency cut in its main interest rate ahead of a scheduled meeting next month.

"The Fed's statement -- which said the central bank is 'prepared to act as needed' --...