NEW YORK CITY: The dollar slipped further against the euro Thursday after Wednesday’s sharp loss on the Federal Reserve’s decision not to cut its stimulus.
But the greenback rebounded against the yen and the British pound as markets digested the fallout from the shock Fed decision.
At about 2300 GMT, the euro was at $1.3534, compared to $1.3536 on Wednesday. The dollar had dropped to $1.3568 in Thursday trade, a level last seen in February.
Both the dollar and euro pushed sharply higher against the yen, which sagged as the country reported a record trade deficit in August despite a solid export performance.
The dollar rose to 99.38 yen from 98.06, while the euro jumped to 134.52 yen from 132.55.
The euro hit a three-year high against the yen during trade, reaching 134.95.
Analyst Fawad Razaqzada said the yen’s weakness could reflect “renewed expectations of further intervention from the Bank of Japan, after Prime Minister Shinzo Abe and some members of his cabinet have reportedly agreed to increase the VAT.”