Early trade in New York: dollar drops after Fed unveils unprecedented measures for debt

The dollar dropped on Monday after the US Federal Reserve took unprecedented steps to backstop a range of debt in an attempt to offset the "severe disruptions" to the economy caused by the coronavirus outbreak.
The steps include establishment of new programs that will lend against student loans, credit card loans, and US government backed-loans to small businesses, as well as new programs to buy bonds of larger employers and make loans to them.
Existing purchases of US Treasury and mortgage-backed securities will be expanded as much as needed "to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy."
"There's no doubting that the Fed is doing everything within its power to see the economy through this period of unbelievable turmoil," said Craig Erlam, senior market analyst at OANDA Europe.
Investors are now waiting on the US government to pass stimulus to support the economy.
Senate Democrats objected to a $1 trillion-plus stimulus bill on Sunday as being overly weighted toward corporate interests at the expense of healthcare workers, hospitals and state and local governments.
The dollar index against a basket of peers was last 101.79, down 0.7% on the day.
The dollar had gained earlier before the Fed action as stocks plunged, raising concerns that the multiple central bank actions so far to ease liquidity across markets have not been effective.
The euro was last up 0.98% against the greenback at $1.0799.