The dollar extended its losses yesterday, sliding to levels not seen in months against the euro, the Swiss franc and the British pound after the Federal Reserve appeared less strict in its latest stance than analysts had expected.
Swiss franc and yen strengthen against the dollar
The Swiss franc gained support from the Swiss National Bank’s decision to keep its key interest rate at zero. The dollar fell 0.7 percent against the franc, after briefly touching its lowest point since mid-November earlier in the session. It also weakened 0.6 percent against the yen, trading at 156.04 yen. The dollar index dropped to 98.16 points, marking a decline of 0.63 percent.
Euro and sterling advance
The euro strengthened by 0.54 percent against the dollar, reaching 1.1757, its highest level since early October. The British pound also posted gains of 0.3 percent, rising to 1.3420 dollars, a two-month high.
Bond yields add pressure on the US currency
The dollar faced additional downward pressure as yields on US 10-year government bonds eased. The shift followed the Federal Reserve’s decision to begin purchasing short-term securities starting today, a move aimed at reinforcing the liquidity of bank reserves.
