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Rate cut hits both the dollar and the yen

lil dickie said: "The amazing 75 point cut is pushing both the dollar and [url=http://www.ft.com/cms/s/0/9c57ad0c-c8ce-11dc-b14b-0000779fd2ac.html]the yen[/url] lower. [quote] The cut - which was more aggressive than the 50 basis-point move rumoured ahead of the announcement - boosted risk appetite. This drove investors back into carry trades, in which the low-yielding yen is sold to fund the purchase of riskier, higher-yielding assets. Earlier in the session, the yen had soared to a two-and-a-half year high of Y105.63 against the dollar after a sharp drop in Asian stock markets put further pressure on risk appetite. [/quote] The dollar sold off aggressively. How will this newest rate cut affect the dollar?"

Heather said: "They can't go much lower, can they?"