U.S. dollar mixed after Fed rate cut

NEW YORK, March 18 (Xinhua) -- The U.S. dollar was mixed against major currencies on Tuesday after the U.S. Federal Reserve slashed its benchmark interest rate and new economic data provided more evidence of a recession and inflation pressures.

The U.S. central bank cut the federal funds rate from 3 percent to 2.25 percent, the lowest point since late 2004. The 75 base points cut was less than the 100 base points many analysts expected, but the Fed left the door open to an additional reduction.

"Financial markets remain under considerable stress, and the tightening of credit conditions and the deepening of the housing contraction are likely to weigh on economic growth over the next few quarters," the Fed said.

U.S. housing starts fell 0.6 percent in February, the Commerce Department reported on Tuesday. New construction of single-family homes, a more stable indicator of new-home trends, fell 6.7 percent to the lowest since January of 1991.

U.S. producer prices rose by 0.3 percent in February as expected, but a key measure of core inflation at the producer level climbed at the fastest pace in well over a year, the Labor Department said.

The euro fell to a daily low of 1.5633 dollars before rebounded to 1.5711 dollars in late New York trading, still below the 1.5731dollars it bought late Monday. The British pound rose 2.0182 dollars from 2.002 dollars.

The dollar climbed back to 100 Japanese yen from 98.04 yen on Monday. The greenback rose to 0.9969 Swiss francs from 0.9877 Swiss francs, and fell to 0.9921 Canadian dollars from 1.0009 Canadian dollars.