Bernanke signals Fed rate cut

DOLLAR HITS NEW LOW AS FED SIGNALS ANOTHER CUT

By Krishna Guha in Washington

Published: February 27 2008 15:21 | Last updated: February 28 2008 00:23

The dollar fell to a fresh record low against the euro on Wednesday as Ben Bernanke signalled that the Federal Reserve is likely to cut interest rates again next month.

The single European currency breached $1.51 after the Fed chairman made it clear that the US central bank remained firmly focused on the risks to growth, in spite of some increase in inflation risk following a run of bad price reports.

The Fed “will act in a timely manner as needed to support growth and to provide adequate insurance against downside risksâ€