Dollar suffers as Fed’s money easing affects fiat supply
The dollar traded red on Tuesday on signals that secured funding conditions are easing slightly after the U.S. Federal Reserve decided to give bottomless quantitative easing to offset and ensure greenback liquidity.
The dollar index =USD shed 0.5% to 101.64. It strayed farther from Friday’s upbeat performance of 102.99, its strongest session since January 2017.
The dollar placed below yen with 1% loss to 100.19 yen. The decline followed after the greenback reached a one-month high of 111.59 from its previous trading activity.
The U.S. Federal Reserve pronounced endless quantitative easing and programs to aid financial markets on Monday. The arrangement is aimed at mitigating the economic recession as countries implemented emergency restrictions on financial industry to contain the novel coronavirus.