Dollar Drops Further Vs. Euro on Rate Cut; Canadian Currency Also Hits a High
NEW YORK -- The dollar dropped to its seventh straight record low against the euro yesterday, a response to the Federal Reserve's cut in U.S. interest rates. The dollar also lost heavily against its Canadian counterpart, touching its lowest level in modern times.</br></br>The dollar maintained gains on the yen, after the Bank of Japan voted to keep interest rates on hold during Asian trading.</br></br>The euro broke the $1.45 barrier to $1.4508 after the Federal Open Market Committee announced its interest-rates cuts. At 4 p.m., the euro was at $1.4486, up from $1.4436 late Monday, while the dollar was at 115.35 yen, up from 114.69. The euro was at 167.10 yen, up from 165.67 yen. The United Kingdom pound was at $2.0793, up from $2.0683. The dollar was quoted at 1.1581 Swiss francs, down from 1.1590.</br></br>The Canadian dollar extended its gains to C$0.9422, its modern-day high against the U.S. dollar. At 4 p.m., the U.S. dollar was trading at C$0.9448, down from C$0.9529 Tuesday.</br></br>The C$0.9422 level dates from Aug. 21, 1957. It represents the strongest level reached by the Canadian dollar since the Bank of Canada was established and charged with managing the currency in the 1930s.