Dollar continues upward climb after Fed taper
Dollar rose against major currencies the day after US Fed scaled back its stimulus programme.
NEW YORK (AFP) - The dollar Thursday continued to strengthen against major currencies the day after the US Federal Reserve scaled back its stimulus program.
Near 2200 GMT, the euro fell to $1.3661 from $1.3680 Wednesday.
The dollar edged higher against the Japanese yen, trading at 104.22 from 104.20, while the euro fell to 142.41 yen from 142.56.
The dollar also rose against the British pound and the Swiss franc.
The dollar continued its course from Wednesday, when it rose against most major currencies after the Fed said it would reduce monthly asset purchases by $10 billion, to $75 billion.
"The US dollar is stronger after the Federal Reserve delivered its long-awaited policy shift at yesterday's announcement," said Nick Bennenbroek, head of currency strategy at Wells Fargo Securities.
Although the US central bank also signaled it would keep it key interest rate ultra-low for longer than previously announced, the decision to taper stood in contrast to the policies of other central banks that show no sign of tightening anytime soon.
"The yen doesn't seem to stand much of a chance these days after the Fed tapered stimulus," said Joe Manimbo, senior market analyst at Western Union Business Solutions.
"With the Fed's most accommodative days likely in the rearview mirror, Japanese authorities appear poised to ramp up stimulus next year to keep one of the world's biggest economies from unraveling."
Similarly, the European Central Bank is expected to "reach deeper into its monetary toolkit to keep the economy on the road to recovery," Manimbo said.
The British pound dipped to $1.6371 from $1.6381 Wednesday.
The dollar advanced to 0.8979 Swiss franc from 0.8938.
