September 17, 2012

Dollar falls to 4 month low against euro

China's yuan rose to 12.38 yen from 12.25 yen while Australian dollar fell to $1.0529 from $1.0577.

The dollar fell to a four-month low against the euro in Asia Monday as the Federal Reserve s open-ended stimulus continued to weigh on the greenback, analysts said.

The single currency bought $1.3136 in the afternoon -- its highest since early May -- compared with $1.3127 late Friday in New York.

The euro was also trading at 102.78 against the yen, from 102.90 yen on Friday, while the dollar was at 78.28 yen from 78.37 yen.

"The dollar fell broadly, dropping to a four-month low versus the euro, after the Fed s Thursday announcement of a third bond-buying programme," Phillip Futures said in a report.

The Fed said Thursday it would start a third programme of quantitative easing by purchasing $40 billion a month in mortgage-backed bonds and would keep the scheme in place until it saw substantial improvement in the jobs market. The measure will see a flood of dollars hitting the market, likely weakening the unit.

Against other Asia-Pacific currencies, the US dollar fell to 53.80 Indian rupees from 54.73 rupees on Friday, to 30.80 Thai baht from 30.82 baht, to Tw$29.27 from Tw$29.45, to 1,114.52 South Korea won from 1,118.45 won and to 9,500.04 Indonesian rupiah from 9,543.00 rupiah.

However, it edged up to 41.47 Philippine pesos from 41.43 pesos, and to Sg$1.2225 from Sg$1.2221.

Source: washingtonpost


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