US dollar weakens after Fed's unlimited QE policy

Source :IANS
Author :IANS
Last Updated: Wed, Mar 25th, 2020, 10:48:23hrs
US stock

New York:  The US dollar declined in late trading on Tuesday after the Federal Reserve offered unlimited quantitative easing (QE) policy and other measures.

The dollar index, which measures the greenback against six major peers, decreased 0.42 per cent at 102.0339 in late trading.

In late New York trading, the euro rose to $1.0757 from $1.0733 in the previous session, and the British pound rose to $1.1748 from $1.1528 in the previous session. The Australian dollar rose to $0.5912 from $0.5792, Xinhua reported.

The US dollar bought 111.46 Japanese yen, lower than 111.50 Japanese yen of the previous session. The US dollar decreased to 0.9831 Swiss franc from 0.9840 Swiss franc, and it decreased to 1.4492 Canadian dollars from 1.4522 Canadian dollars.

"The Fed's decisive action is showing an effect," as it increased its interventions package and got out "the heavy artillery," Thu Lan Nguyen, analyst at Commerzbank Research, said in a note on Tuesday.

The US central bank announced on Monday a plan to purchase US treasuries and agency mortgage-backed securities with no limit to help markets function more efficiently amid coronavirus uncertainty.