Dollar Slips As Unemployment Hits 25-year High

On Thursday, the European Central Bank made a modest interest-rate cut but said it could lower the rate further if necessary. That leaves the ECB with more room to maneuver than the U.S. Federal Reserve and the Bank of England, which already have lowered their rates to near zero.

Cutting interest rates can weaken a currency as investors move funds to places where they earn better returns, but the ECB still has one of the highest interest rates among the major economies.

Also Thursday, the G-20 summit in London pledged $1.1 trillion in loans and guarantees to struggling countries and agreed to crack down on tax havens and hedge funds. However, it did not satisfy calls from some countries for new economic stimulus measures.

In other late trading Friday, the dollar slipped to 1.1315 Swiss francs from 1.1368 late Thursday, and fell to 1.2306 Canadian dollars from 1.2406.

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