Dollar down as ECB cuts rates by 75 basis points
The dollar was down against the euro yesterday, as the European Central bank made a bigger than expected interest rate cut. The ECB cut rates by 75 basis points to 2.5%, which was 25 basis points more than analysts were predicting, pushing the euro up and the dollar down.
The Bank of England also lowered its rate by 100 basis points, its lowest level since 1951 to 2% as it looks to prevent a long lasting recession.
Investors were reluctant to take on the dollar, as key US employment data is due later today, which is expected to show a loss of around 340,000 jobs in November.
The euro was up around 0.5% against the dollar at 1.2774, while sterling fell against the US currency by 0.66% at 1.4681. The euro also hit record highs against the sterling and saw it close 1.2% up at 0.8702.