NEW YORK, Feb 27, 2008 (AFP) – The dollar slumped to an all-time low against the euro Wednesday as Federal Reserve chairman Ben Bernanke said the US central bank was prepared to cut interest rates further to ward off a severe economic slump. The US currency was quoted at 1.0630 Swiss francs, down from 1.0752.
The latest price action came after the euro burst the pyschologically important 1.50-dollar barrier for the first time a day earlier.
The single European currency was trading at 1.5119 dollars at 2200 GMT, up from 1.4976 late Tuesday. It had surged to a record 1.5144 dollars in earlier trading before retreating slightly.
The dollar has tumbled sharply against the euro and other major currencies in the past year as the American economy has hit a number of potholes.
The world’s largest economy is weathering one of the worst housing slumps in decades, food and energy prices are spiking and the economy lost jobs in January.
The mounting economic woes have weakened the dollar’s value on foreign exchange markets, in part as some speculators have sold their dollar holdings.
Traders said Bernanke’s remarks put renewed pressure on the dollar, as he told congressional lawmakers the Fed was ready to implement fresh ra