The U.S. dollar fell against major currencies in late New York trading on Thursday as the Fed's new round of quantitative easing policy might be larger than expected.
The dollar rebounded on Wednesday as a report from The Wall Street Journal said the Fed's bond purchases might amount to a few hundred billion dollars over several months, which would be much less than the previous predictions.
However, a fresh survey on Thursday renewed the market's expectation. The New York Fed surveyed dealers and investors about expectations for the initial size of any new program of debt purchases and the time over which it would be completed. The scenario in the survey was up to one trillion dollars, a figure larger than recent estimates.
The euro went back to upward track and broke through 1.39 dollars in late Thursday trading session, while the dollar fell against the yen to near 81.00.
Also, the U.S. jobless claims dropped more than expected, helping to stimulate optimism in the market and push down the dollar. The Labor Department said initial claims for state unemployment benefits dropped 21,000 to a seasonally adjusted 434, 000, the lowest since the week ended July 10.
In late Thursday trading, the dollar bought 81.07 Japanese yen, comparing with 81.71 late Wednesday, and the euro rose to 1.3926 dollars from 1.3761.
The British pound rose to 1.5931 dollars from 1.5758. The dollar fell from 0.9917 to 0.9832 against the Swiss franc, and also fell to 1.0212 Canadian dollars from 1.0298.
The dollar rebounded on Wednesday as a report from The Wall Street Journal said the Fed's bond purchases might amount to a few hundred billion dollars over several months, which would be much less than the previous predictions.
However, a fresh survey on Thursday renewed the market's expectation. The New York Fed surveyed dealers and investors about expectations for the initial size of any new program of debt purchases and the time over which it would be completed. The scenario in the survey was up to one trillion dollars, a figure larger than recent estimates.
The euro went back to upward track and broke through 1.39 dollars in late Thursday trading session, while the dollar fell against the yen to near 81.00.
Also, the U.S. jobless claims dropped more than expected, helping to stimulate optimism in the market and push down the dollar. The Labor Department said initial claims for state unemployment benefits dropped 21,000 to a seasonally adjusted 434, 000, the lowest since the week ended July 10.
In late Thursday trading, the dollar bought 81.07 Japanese yen, comparing with 81.71 late Wednesday, and the euro rose to 1.3926 dollars from 1.3761.
The British pound rose to 1.5931 dollars from 1.5758. The dollar fell from 0.9917 to 0.9832 against the Swiss franc, and also fell to 1.0212 Canadian dollars from 1.0298.
