The dollar was smashed yesterday

The dollar was smashed yesterday as it took hits from all sides and hit all time lows against the euro. The key $1.5300 was breached against the single currency, and the dollar lost nearly 2 cents against sterling. At around 4.00pm, news also trickled through that US Treasury Secretary Hank Paulson had added to the overall bearish sentiment towards the US currency. The Fed’s beige Book report was released yesterday evening and it indicated growth at the start of the year was sluggish and accompanied by rising price pressures. With the credit crunch steadily worsening and no bottom to the housing slump in sight, the Federal Reserve appears poised to deliver another steep interest-rate cut in two weeks time. But be aware, they may go early on this, as we saw back on January 22nd.