Dollar sinks after Fed offers detail on low rates
NEW YORK (AP) — The dollar sank Wednesday against most major currencies after the Federal Reserve pledged to keep interest rates super-low until the unemployment rate falls below 6.5 percent.
The unemployment rate in November was 7.7 percent. The announcement was a shift from the Fed's previous policy, which was to keep interest rates super-low until at least the middle of 2015.
The Fed plan is contingent on low inflation. It implies a long period of low rates in the U.S., a key factor in keeping the value of the dollar low against other currencies that carry higher rates, such as the euro.
The euro rose to $1.3063 Wednesday from $1.3003 late Tuesday.
The British pound rose to $1.6139 from $1.6111. The dollar also slipped to 0.9263 Swiss franc from 0.9333, and to 98.43 Canadian cents from 98.66. The dollar rose to 83.20 Japanese yen from 82.50 yen.