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Euro at new 9-month high over $1.42 after Fed move

Euro at new 9-month high over $1.42 after Fed move

The euro hit a new nine-month high against the dollar on Thursday, rising above $1.42 for the first time since January following the Federal Reserve's decision to spend hundreds of billions on U.S. government bonds.
The 16-nation euro rose as high as $1.4216 in morning European trading before settling back to $1.4198 _ still above the $1.4175 it hit after the Fed's decision Wednesday.
The Fed announced it would spend $600 billion through the middle of next year to buy U.S. government bonds in an effort to boost the economy.
The move was well-telegraphed and in line with market expectations, but market anticipation of it has weighed heavily on the dollar for weeks.
The Fed's effort is aimed at lowering interest rates, which can encourage people to spend but also makes a currency less attractive for investors.
In other trading Thursday, the British pound rose to $1.6173 from $1.6107, while the dollar slipped to 80.94 Japanese yen from 81.29 yen.
Both the European Central Bank and the Bank of England were to deliver their monthly monetary policy verdicts later Thursday, but neither was expected to change course.


Updated : 2021-04-21 17:13 GMT+08:00