Dollar slides to 31-year low vs Canadian dollar
Fri Sep 21, 2007 2:10 AM ET
By Naomi Tajitsu
TOKYO (Reuters) - The dollar tumbled further on Friday, hitting a 31-year low against the Canadian dollar and edging near a record low against the euro as investors dumped the U.S. currency after the Federal Reserve's aggressive rate cut this week.
Support for the dollar has crumbled, dragging it to a 15-year trough versus a basket of currencies and pushing the U.S. currency above the psychological $1.40 level against the euro in the previous session.
A 50 basis point cut in the fed funds rate on Tuesday has battered the dollar as it has tarnished the appeal of assets denominated in the currency. Traders see this trend continuing given expectations that the Fed may cut rates again this year.
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