U.S. Dollar Smashed as Fed Surprises Markets

The dollar languished at a seven-month low against a basket of major currencies in Asia on Thursday after the Federal Reserve wrong footed many investors who had positioned for a scaling back in its massive stimulus program.

The dollar index slid 1.2 percent overnight, its biggest one-day slide in more than 2 months, after the Fed maintained its $85 billion monthly asset-buying program, confounding expectations of a reduction by roughly $10 billion.

It has fallen to levels seen well before Fed Chief Ben Bernanke first floated the idea of tapering the stimulus back in May.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.