The dollar dropped to a record low against the Swiss franc and fell close to a record trough against the euro Monday as rumours of an emergency cut in US interest rates swept the market.

Markets moved to price in fully a 50 basis point cut in US interest rates at its meeting on January 30 after a speech last week from Ben Bernanke, chairman of the Federal Reserve, in which he said the central bank stood ready to take “substantive additional action” to support growth.