NEW YORK, Sep 18 (Reuters) The dollar touched a record low versus the euro on Tuesday after the Federal Reserve cut the U.S. benchmark lending rate by half a percentage point, the first cut in four years, in a bid to boost the U.S. economy.
''The dollar falls as expected on a 50 basis-point rate cut from the Fed,'' said Omer Esiner, a market analyst at Ruesch International in Washington. ''The accompanying statement sounds a somewhat cautious tone, pointing out the Fed is a bit more worried about the fallout from the recent financial market turmoil.'' Against the dollar, the euro was 0.4 percent higher to trade at $1.3924, but had traded as high as $1.3964, a record high. The dollar pared some of its early gains against the yen to trade at 115.36 yen.
REUTERS SR BST0010