Dollar hits new 2-month low against euro

The dollar fell to a fresh two-month low against the euro in Asia on Tuesday as traders bet the US Federal Reserve would cut interest rates again this week.
The euro rose to as high as 1.3738 dollars, up from 1.3695 in New York late Monday. The European currency slipped to 124.00 yen from 124.14.
The dollar fell to 90.35 yen from 90.63, edging back down towards last week's 13-year low of 88.40.
Traders were turning their focus to the Fed's two-day policy meeting through Tuesday, when the central bank is expected to trim its key lending rate from the current level of 1.0 percent, following a raft of gloomy economic data.
"I think they will go for a cut of at least 0.5 percentage points," said Saburo Matsumoto, chief forex strategist at Sumitomo Trust and Banking.
Matsumoto said it would be possible for the US central bank to slash rates by as much as 0.75 percentage points to 0.25 percent, which would be even lower than Japan's rock-bottom official borrowing costs of 0.3 percent.
"The market has already factored a cut in," he said, while arguing it was questionable what impact another rate cut would have on the economy.