Fed cut boosts dollar, but doubts remain

The dollar gained slightly against the euro following the decision, but the reaction was relatively muted.

The US central bank lowered its Fed Funds rate to 1% and only one Federal Reserve Open Market Committee (FOMC) member voted for a 50 basis point cut. The market had been expecting a cut of some kind, with the main debate surrounding whether it would be 25 or 50 basis points.

"Most economists were going for 25, but money-market rates were split down the middle," said Jane Foley, currency