The dollar hit a record low against major currencies and gold reached a 27-year high on Friday as investors ignored data suggesting that inflation moderated last month .Analysts said the prospect of rate cuts by the Federal Reserve and stronger growth outside the US was weighing on the dollar and boosting commodities according to the Financial Times.

“The Fed’s rate cuts have a specific driver – growth risks for the US economy,” said Naomi Fink, senior currency strategist at BNP Paribas.

The dollar index, which measures the greenback against six major currencies, fell 0.8 per cent to a record low of 77.66 on Friday. The index has fallen 5 per cent since mid-August.

For the seventh straight day, the Euro set a record high against the dollar, rising to $1.4278. Alan Ruskin, chief international strategist at RBS Greenwich Capital, said central banks would express concern if the dollar “quickly approaches $1.45 against the Euro”.

Read it here: Dollar Sinks as Gold Hits 27-year High