Dollar Sharply Lower
March 19th, 2009Via: BBC:
The dollar has fallen against all major currencies after the US Federal Reserve announced a plan to buy $1.2tn (£843bn) of debt to boost its economy.
The dollar fell by 3.8% against the euro and by 3.6% against the pound.
The US currency also declined against the yen, the Norwegian krone, the Australian dollar and Brazilian real.
The Fed’s decision to buy debt means it is effectively creating new money, leading to concern from investors about the over-supply of dollars.
Dollar rally ends
The dollar traded at $1.449 against the pound, its lowest since late February.
The US currency also had its biggest drop against the euro in over two months, to $1.3633 versus the 16-nation European currency. Against the yen, the dollar bought 94.88.
