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Rate cut hammers Sterling

Sterling hit a record low against the euro and its weakest versus the dollar since 2002 on Thursday, but trimmed some losses after the Bank of England cut interest rates by 100 basis points to shore up the flagging UK economy, however the bearish sentiment remains and it opened beneath 1.4700 this morning, as most market participants believe that the Bank of England is likely to ease rates further in the near-term.

The USD weakened across the board as aggressive rate cuts around the world helped to improve global sentiment. The greenback opens weaker against the Japanese Yen and Euro as US unemployment claims hit a 26-year high as a new wave of corporate lay-offs sweep the world's largest economy.

Against the Yen, the big dollar moved down to a session-low of 92.06 and opens marginally above that level this morning.

European Central Bank lowered its benchmark interest rate by 75 basis points to 2.50 per cent amid the Bank's ongoing concern about the state of the 15-nation economy.