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.


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