Financial Times FT.com

Dollar shows its strength as Fed holds rates

By Shyamantha Asokan

Published: September 16 2008 10:50 | Last updated: September 16 2008 10:50

The dollar performed strongly on Tuesday as the Federal Reserve held interest rates, confounding expectations that the central bank would ease monetary policy to revive the US financial sector after the collapse of Lehman Brothers.

The Fed funds rate was left unchanged at 2 per cent and the discount rate kept at 2.25 per cent. Some analysts had been predicting cuts of up to 50 basis points.

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