Dollar Drops vs. World Counterparts

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The dollar dropped against most of the major world currencies Wednesday as the

Federal Reserve's

statement following the central bank's 10th interest rate cut this year stoked fears that the U.S. economy may not respond quickly to the latest action.

The dollar fell to 89.99 cents per euro from 89.47 in the prior session. The greenback slipped to 121.08 yen from 121.24 previously. The pound rose to $1.4637 from $1.4572 Tuesday. The euro traded at 108.90 yen.

After Tuesday's Fed reduction of 50 basis points, the fed funds target rate is 2%, the lowest level in 40 years.