The dollar fell to a five-month low versus the yen after an emergency 50 basis point cut in interest rates by the U.S. Federal Reserve was deemed insufficient to offset downside risks posed by the global spread of the coronavirus.
The greenback traded near the lowest in almost two years against the Swiss franc as investors flocked to traditional safe havens.
The euro was one of the currencies to benefit most from the broad-based dollar weakness as traders bet the Fed will cut rates more than the European Central Bank.
The dollar fell to 106.85 yen in Asia on Wednesday, its lowest in almost five months.
The Fed surprised investors by cutting rates by 50 basis points to a target range of 1.00% to 1.25% on Tuesday, two weeks ahead of a regularly scheduled policy meeting.
The euro last traded at $1.1173, close to a one-month high reached on Tuesday.
Against sterling, the euro traded at 87.15 pence, close to the highest in almost four months. Sterling bought $1.2817, holding onto modest gains from the previous session.
Source : Reuters