Exchange rates

Dollar doldrums

THE dollar has plunged in recent days as the collapse of Bear Stearns and the Fed's discount-rate cut contributed further to its continuing slump. In trading on Monday March 17th the greenback fell to ¥95.76, its lowest point since August 1995, while also touching its lowest level against the euro since trading began in 1999. Although the dollar rallied on Tuesday, markets now await the Federal Reserve's interest-rate decision later in the day. Futures markets are anticipating a cut of up to one percentage point, but there are fears this would cause further flight from the beleaguered currency, perhaps into gold.

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