Tuesday, 21 Sep 2010

Dollar Down on Federal Reserve Comments

The Dollar fell broadly today against 15 of its 16 most traded counterparts after the Federal Reserve stated concerns at the slowing pace of the U.S. economy and saying it is willing to ease monetary policy further to boost the economy and lower unemployment; however, deferring taking action to boost growth and refraining from expanding its holdings of securities.

The EUR gained sharply, rising more than 1% on the day, to its strongest level since Aug. 10, ticking above $1.32. Successful auctions of government debt in Ireland, Spain and Greece benefited the EUR's climb versus the USD.

The U.D Dollar weakened against the Yen, briefly dipping below 85 Yen, a significant support level for the pair.

Towards NY closing hours, the EUR is trading at $1.3250 from $1.3061 late Monday. The Dollar is at 85.03 Yen from 85.75 Yen, while the EUR is at 112.53 Yen from 112.02 Yen. The U.K. pound is at $1.5617 from $1.5552.