Dollar mixed as Fed keeps on bond buying plan

Posted on Dec 15, 2010 in AllEconomic News
The U.S. dollar traded mixed against major currencies in late New York trading on Tuesday, as the U.S. Federal Reserve reaffirmed its 600-billion-dollar bond buying plan announced a month ago.

In a statement on Tuesday that contained little acknowledgment of a recent uptick in the economic data but focused squarely on high unemployment, the Fed characterized the U.S. expansion as ” continuing,” a modest upgrade from its November description of the recovery as “slow.”

The Fed said the economic recovery was still too slow to bring down unemployment, reaffirming its commitment to purchase 600 billion dollars in bonds to stimulate growth and create jobs.

The euro rose to near 1.350 against the dollar in mid trading session but later fell below 1.34, and the dollar traded above 83. 50 against the yen in late trading session.

The dollar index, a gauge to measure the greenback’s performance against a basket of currencies, rose 0.16 percent to 79.413 on Tuesday.

In late Tuesday trading, the dollar bought 83.65 Japanese yen, comparing with 83.34 late Monday, and the euro fell to 1.3387 dollars from 1.3404.

The British pound also fell to 1.5776 dollars from 1.5871. The dollar fell from 0.9678 to 0.9591 against the Swiss franc, and also fell to 1.0052 Canadian dollars from 1.0075.

Dollar mixed as Fed keeps on bond buying plan – People’s Daily Online.