Related: Fed Goes Nuclear
"US dollar's appeal as safe haven deflates; Currency slides against yen, euro after Fed rate cut" by Bloomberg News | December 18, 2008
LONDON - The world's biggest currency trading firms say the dollar's appeal as a haven amid the financial crisis all but evaporated.
The US currency slid to a 13-year low against the yen yesterday and had its biggest one-day decline versus the euro after the Federal Reserve reduced its target interest rate Tuesday to a range of zero to 0.25 percent, the lowest among the world's biggest economies. CMC Markets said yesterday the currency's prospects appear "ominous." State Street Global Markets said the dollar's outlook has been "undermined."
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State Street Global Markets, a unit of the world's largest money manager for institutions, said the Fed's move is "perilous" for the dollar....
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