The Fed cited massive destruction in the economic conditions and noticed that the outlook is weak with continuous downside risks to the growth, or we can say what's left of it. For that a call of emergency shattered the interest rate by 75bp.

The Fed cut rates responding to a global slump in stock markets that heightened concerns about a recession. The dollar fell after the unexpectedly slashed rate yet today the dollar rebounded slightly as fears of a global economic slowdown encouraged investors to seek the safety of the US Treasuries. The Feds also signaled that further rate cuts are likely.

Meanwhile, the US dollar gained slightly against the euro after extending its overnight losses amid the Fed's emergency slash in rates by 75bp in an attempt to prevent the US economy from falling into a recession. The dollar however is showing mixed trading where the pair fetched at this hour a high of 1.4684 and a low of 1.4575.

The dollar tumbled yesterday against the British Pound on the back of the Feds surprise cut and dovish statement in which the BOE dovish stand indicates a likely further cut in rates. As for today, so far the pound is fluctuating pushing the pair to record a high of 1.9615 and a low of 1.9549.

The Yen's slight appreciation was just a technical correction accordingly to analysts because the way they see it is that there is no reason for the Yen to go up because of lower interest rates and slowing growth in Japan.

Growing risk appetite and lower interest rates in Japan may encourage investors to borrow the low-yielding Yen and invest in higher-yielding assets elsewhere. The dollar rebounded slightly against the yen pushing the pair to record at this hour a high of 107.37 and a low of 106.09.