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Dollar slides as Fed says it will buy bonds

Dollar slides as Fed says it will buy bonds

The dollar is sliding after the Federal Reserve said it would begin a program to boost the U.S. economy by buying hundreds of billions more in U.S. government bonds.
The euro has jumped to $1.4101 from $1.4036 late Tuesday, while the British pound is rising to $1.6111 from $1.6024.
The dollar has lost earlier gains against the Japanese currency, trading at 81 yen versus 80.68 yen late Tuesday, after being worth as much as 81.52 earlier Wednesday.
The dollar has been under heavy selling pressure in the past two months because investors expected the Fed's move. By buying bonds, the Fed would drive down interest rates and trigger more borrowing and spending. But the prospect of lower interest rates makes a currency less attractive to investors.


Updated : 2021-05-09 14:17 GMT+08:00