Fed Rate Cut Fears Drive Dollar Value Down
- Mar 19, 2008
New York–The dollar fell against the euro, yen and Swiss franc because of concern that the Federal Reserve’s recent string of interest rate cuts won’t be able to boost the U.S. economy, Bloomberg reported Wednesday.The decline began in Asian trading on conjecture some European and U.K. banks were about to experience capital problems. Higher-than-expected earnings from Morgan Stanley and the announcement of new Fannie Mae and Freddie Mac requirements helped briefly raise the dollar.The dollar fell from $1.5625 Tuesday to $1.5704 per euro at in the morning in New York. Against the yen, the dollar dropped from 99.85 Tuesday to 99.02 yen.