Bloomberg.com: Currencies

Bloomberg.com: Currencies: "Dollar Falls Versus Euro After Surprise Fed Discount Rate Cut By Min Zeng Enlarge Image U.S. ten dollar bills and 10 Euro notes Aug. 17 (Bloomberg) -- The dollar fell versus the euro and pound for the first time this week after the Federal Reserve reduced its discount lending rate to prevent credit market losses from slowing the economy. The dollar weakened against 14 of 16 major currencies as a reduction in borrowing costs dims the allure of U.S. assets. The decline today trimmed the dollar's weekly advance as investors had sought safety in the currency after a global rout of credit markets. U.S. and European stocks rallied. ``The Fed has taken the first step to calm down the market and restore investors' confidence,'' said Tom Fitzpatrick, global head of currency strategy at Citigroup Global Markets Inc. in New York. ``The dollar is getting a double-whammy. A reduction in interest rates makes it less attractive. The safe-haven flow into the dollar also flooded out.'' The dollar fell 0.5 percent to $1.3494 per euro at 11:13 a.m. in New York, from $1.3426 yesterday. The U.S. currency also decreased 0.2 percent to $1.9859 per pound and 0.2 percent to 113.66 yen. The decline today trimmed the dollar's weekly gain to 1.4 percent against the euro and 1.9 percent versus the pound."