The euro fell to a six-week low against the dollar and the dollar hit a two-month high against the yen today following the Federal Reserve's smaller than expected rate cut on Wednesday. At 1510, the single currency was trading at USD1.1464, while against sterling it was at STG0.6887. The dollar was worth 119.78 yen, up 0.3pc on the day.
"Following the Fed's 0.25pc rate cut and its upbeat assessment of the US economy, the dollar has continued to rally against other majors, with the euro looking vulnerable to a break below USD1.14 and the yen falling to a two month low in overnight trading," said Geraldine Concagh, senior economist with AIB Global Treasury. The dollar retreated slightly this morning following a report on US personal income and consumption today which revealed that lower prices in the shops meant greater spending power for consumers in May and June. Currency market participants are becoming increasingly inclined to believe that the Fed's monetary easing campaign may have ended, traders said. //www.fxcentre.com