Dollar drops to record lows against the euro

The dollar fell today to record lows through the $1.40 level against the euro. The American currency continued its slide after the Fed cut interest rates by 50 basis points earlier this week.

The $1.40 barrier is considered an important "pain barrier" for eurozone exporters, and the breach of this level caused an outbreak of stop-loss buying which sent the euro higher across the board.

The single currency rose 0.5% to $1.4035 against the dollar and by 0.4% to £0.7006 against the pound, the high