Dollar falls to record low against euro

0 Comments | AFP, September, 2007

NEW YORK (AFP) — The US dollar fell to a record low against the euro Wednesday amid mounting expectations that the Federal Reserve would cut interest rates next week due to concerns about economic growth.

Many economists expect the US central bank to cut its key short term federal funds interest rate at a policy meeting next Tuesday amid a persistent housing downturn which has triggered mortgage defaults, as well as credit squeeze on Wall Street.

The fed funds rate has been pegged at 5.25 percent since June 2006.

The single European currency was quoted at 1.3904 dollars at 2100 GMT, up from 1.3838 dollars late Tuesday in New York. The euro had surged to a record high of 1.3914 dollars in earlier trading.

The dollar was slightly weaker against the...