US dollar sinks as Federal Reserve slashes rates to record lows

The US dollar sank against major currencies Tuesday after the US Federal Reserve cut its target for a key interest rate to an all-time low in a bid to stem the US's economic slide. The central bank said it reduced the federal funds rate to a range of zero to 0.25 percent. That is down from the 1 percent target rate in effect since the last meeting in October. Many analysts had expected the Fed to make a smaller cut to 0.5 percent. The 15-nation euro jumped to $1.3976 in late New York trading, peaking at $1.4148, its highest point since Oct. 1, from $1.3665 late Monday in New York. The British pound climbed to $1.5469 from $1.5253. Meanwhile, the dollar fell to 89.35 Japanese yen from 90.60 yen late Monday in New York, circling 13-year lows. On Friday, the buck bottomed at 88.16 yen, its lowest point since August 1995.