MW: Dollar dips after central banks stage coordinated rate cuts
By Nick Godt
NEW YORK (MarketWatch) -- The dollar fell against major currencies early Wednesday, failing to hold onto gains in the immediate wake of a coordinated move to cut interest rates by the three main central banks. The dollar index , which measures the U.S. unit against a basket of six major currencies stood at 80.812, down from 80.907 ahead of the news. After initially rallying after the announcement, futures for the Dow Jones Industrial Average last fell 182 points to 9,350. The coordinated rate moves saw the Fed cut its key lending rate by half a percentage point, to 1.5%. The European Central Bank trimmed its key refi rate to 3.75% from 4.25%, while the Bank of England cut its key rate to 4.5% from 5%. The Bank of Japan sat out the move but issued a statement backing the action.
