The dollar fell yesterday on profit-taking after recent strong gains for the US currency in reaction to the Fed’s move to pump more than $1tn into the financial system, traders said. In London trade, the euro climbed to $1.3672 from $1.3660 late in New York on Thursday. Against the Japanese currency, the dollar dropped to ¥94.51 from ¥94.55 on Thursday. Markets in Tokyo were closed for a public holiday. Investors have sold off the dollar since the Federal Reserve made known its stimulus plans on Wednesday, raising fears the move will make US assets less attractive. The Federal Reserve had surprised markets earlier this week with new moves to shore up the world’s biggest economy. It said it would buy up to $300bn in long-term US Treasury bonds in the next six months and boost purchases of mortgage-backed securities by $750bn to bring its total to $1.25tn this year. The pound was at trading $1.4546 from $1.4496 on Thursday. On the London Bullion Market, the price of gold rose to $960.44 an ounce from $956.50 an ounce late on Thursday.
