Federal Reserve's Dollar Drops as Fed Says

Federal Reserve's Dollar Drops as Fed Says : The dollar dropped against the euro for a seventh day after the Federal Reserve said a pickup in inflation is likely to be temporary as it decided to finish $600 billion of bond purchases on schedule in June.

The greenback earlier touched its lowest level since December 2009 on speculation the Fed will keep borrowing costs low. Fed Chairman Ben S. Bernanke is due today to give his first press conference after a policy meeting.

“The Fed is staying the course,” said Vassili Serebriakov, a currency strategist at Wells Fargo & Co. in New York. “This should not stand in the way of further dollar weakness. It’s obviously no change to the Treasury c, as was expected.”

The dollar depreciated 0.4 percent to $1.4697 versus the euro at 12:54 p.m. in New York, from $1.4644 yesterday. The U.S. currency gained 1 percent to 82.36 yen, from 81.55. The euro traded at 121.08 yen, compared with 119.42.Read More....

Tag, federal reserve bank, Federal Reserve said Dollar,Vassili Serebriakov, currency strategist, Federal Open Market Committee

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