LONDON, Jan 23: The dollar was mixed in very choppy trade on Wednesday as the market tried to come to terms with the radical US interest rate cut of the previous day, dealers said.

They said the dollar had fallen sharply after the US Federal Reserve slashed interest rates by a dramatic three quarters of a point to 3.5pc on Tuesday but it then recovered some lost ground because of its safe haven status.

The euro in turn had got a boost early on Wednesday after the European Central Bank head insisted the ECB's mandate was to keep inflation in check -- remarks taken to mean the ECB would not be cutting its interest rates any time soon.

In late European trade on Wednesday, the euro was at $1.4574, down from $1.4594 in early trade and $1.4628 in New York late on Tuesday.

The dollar in turn fell to 105.42 yen from 106.45 yen late on Tuesday.

On the London Bullion Market, the price of gold rose to $888.25 an ounce from $875 late on Tuesday. —AFP