The dollar crawled up against the euro this morning but remained near a record low after the Federal Reserve's interest rate cut further eroded the US currency's appeal to foreign investors.
The euro slipped 0.1 per cent from US trade to $1.4465 after having vaulted above $1.45 for the first time in its nearly nine-year life to a record high of $1.4508 on trading platform EBS.
But the dollar held firm against the low-yielding yen as the Japanese currency is used as a cheap source of funds to buy higher-yielding currencies in carry trade.
The Fed moderated expectations for further cuts in short-term rates by saying inflation risks were equal to the possibility of slower growth, but analysts said it would take upbeat US economic data to help lift the beleaguered dollar.
The Fed trimmed rates by 25 basis points to 4.5 per cent on top of a half-point slash in September as the central bank tries to counter the effect of housing market problems on the economy.
