Sun, Jun 23, 2013 - Page 15 News List

US dollar reigns on Fed policy shift

GLOBAL EXCHANGE:Concern over the Fed’s plans to cut back its debt purchases sparked a flight to the US dollar, lifting it against the euro and Asian currencies

Agencies, with staff writer

The Dollar Index, which Intercontinental Exchange Inc uses to monitor the greenback against the currencies of six US trade partners, increased 2.2 percent to 82.410. It rose 1 percent on Wednesday when the Federal Open Market Committee left the monthly pace of bond purchases at US$85 billion, saying “downside risks to the outlook for the economy and the labor market” have diminished.

The gauge may climb to 85.7 by the end of the year, according to the median forecast of economists and strategists surveyed by The British pound also slumped 2.1 percent this week to US$1.5379 and depreciated 0.1 percent to £0.8531 per euro.

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