Dollar Ignores Fed Cut

The Federal Reserve’s first interest rate reduction in nearly three years had little effect on the U.S. foreign exchange market Thursday, with the dollar ending mixed against major currencies.

The dollar spiked up momentarily against the German mark, then dropped back down within minutes of the late afternoon announcement of the cut in the federal funds rate from 6 percent to 5.75 percent. The dollar rose against the Japanese yen, but its gain was attributed mostly to last week’s resolution of an automotive trade dispute.

The mixed reaction in foreign exchange markets to the Fed’s decision was in contrast to rallies in U.S. bond and stock markets.

Exchange Currency in Dollars Dollar in foreign currency Canada .7308 1.3683 France .2069 4.8335 Germany .7231 1.3829 Great Britain 1.5992 .6253 Italy .000617 1620.00 Japan .011744 85.15 Mexico .159744 6.2600