Dollar mixed amid fear on Fed's policy

08:50, October 08, 2010      

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The U.S. dollar traded mixed against major currencies in late New York trading on Thursday as the Fed's second round monetary easing policy still worried investors.

The dollar kept on sliding to a 15-year low of 82.32 against yen until investors felt unsafe to sell dollar further, concerning about another market's intervention by the Japanese government.

The euro against the dollar topped 1.40, an eight-month high in early trading as the Bank of England and the European Central Bank both decided to keep monetary policy on hold.

However, the pair fell back later as European Central Bank President Jean-Claude Trichet warned excess volatility in exchange rates posed a risk to economic stability.

Analysts said investors believed the Fed's move was around the corner, while euro zone kept their interest rate unchanged. Both factors led to euro's relatively appreciation against the dollar.

The Japanese government's unexpected interest rate cut on Tuesday raised the speculation that other developed countries' central banks would follow its lead by cutting interest rate or pouring liquidity into the economy, which would weigh on their currencies. And the Fed was considered by the market to be the most likely second announcer.

In late Thursday trading, the dollar bought 82.37 Japanese yen compared with 82.93 late Wednesday, and the euro declined to 1. 3930 dollars from 1.3935.

The British pound also fell to 1.5878 dollars from 1.5896. The dollar rose from 0.9608 to 0.9667 against Swiss francs, and rose to 1.0183 Canadian dollars from 1.0099.

Source:Xinhua

(Editor:黄蓓蓓)

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