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| Version 0 | Version 1 |
|---|---|
| Dollar steady ahead of rate move | Dollar steady ahead of rate move |
| (40 minutes later) | |
| The US dollar has recovered from the record low set against the euro on Monday as investors await an interest rate decision from the US central bank. | The US dollar has recovered from the record low set against the euro on Monday as investors await an interest rate decision from the US central bank. |
| By 1117 GMT a euro was buying $1.5821, down from Monday's record level of $1.5904, hit after the emergency sale of Bear Stearns bank over the weekend. | |
| The failure of Bear Stearns raised fears that the credit crunch is getting worse and is damaging the US economy. | The failure of Bear Stearns raised fears that the credit crunch is getting worse and is damaging the US economy. |
| The US Federal Reserve is expected to slash its key interest rate on Tuesday. | The US Federal Reserve is expected to slash its key interest rate on Tuesday. |
| Some economists say the Fed funds rate could be cut from 3% to 2%. | Some economists say the Fed funds rate could be cut from 3% to 2%. |
| "Anything less than 100 basis points (1%) of cuts will disappoint the market, and I think the initial reaction will be one of dollar weakening," said David Pais, currency strategist at Citi. | |
| "It's hard to see what will give the dollar a boost at the moment." he added. | |
| A dollar was buying 97.41 yen, well off the low hit on Monday of 95.72. | |
| Meanwhile, the pound strengthened against the dollar, buying $2.0166. | |
| Overnight, it dropped below the $2 level. |