Dollar Drops on Fed Quantitative Easing Discussions

After December’s Fed meeting minutes went public today, the U.S. dollar declined versus multiple currencies, as policy makers discussed extending economic stimulus to revive the economy if necessary, impacting negatively the greenback’s outlook.

The content of a Federal Reserve meeting held in December and published surprised traders and analysts as extending asset purchase programs were among the topics, according to policy makers, if the economy weakens. The U.S. dollar declined versus the euro and most of the main traded currencies as much of its strength has been backed by speculations suggesting the opposite, lifting stimulus and raising interest rates and the economy surges.

EUR/USD traded at 1.4412 as of 21:06 GMT from as long as 1.4280 earlier today.

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