The Dollar posted a large fall on Wednesday, with the Federal Reserve delivering an interest-rate cut, easing investor concern about the world economy and reducing the need to repatriate Dollars from riskier markets.

The Federal Open Market Committee lowered its key interest rate by a 50bp to 1%, the lowest level since 2004, in a move to prevent a widening financial market crisis from tipping the US economy into a prolonged recession.

The Fed is expected to lower benchmark interest rates further in the months ahead given a downbeat economic outlook in the Fed's policy statement on Wednesday. Interest-rate futures contract prices reflect another 25bp rate cut at the December Fed meeting. ...More...


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