NEW YORK: The US dollar pared losses against the euro on Wednesday after the Federal Reserve's Federal Open Market Committee said after meeting that US economic growth strengthened somewhat in the third quarter.
Investors interpreted that as removing the possibility of further policy easing, at least for now.
"The headline that says household spending increased and overall growth strengthened somewhat was, on the margin, a slight improvement and is giving the dollar a bit of a boost," said Omer Esiner, senior market analyst at Commonwealth Foreign Exchange in Washington. "For now, it seems QE3 is off the table, and that will put the focus squarely back on Europe."
The euro last traded at $1.3757, up 0.4 percent on the day, compared with $1.3780 before the announcement.
The dollar was at 78.05 yen, down 0.3 percent on the day, compared with 78.01 yen before the Fed decision.
Copyright Reuters, 2011
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