NEW YORK, Oct. 27 (Xinhua) -- The U.S. dollars rises against major currencies in late New York trading on Wednesday as the scale of the Fed's stimulus plan might be smaller than expected.
3 B- _& e# F5 B& m: |1 r& j3 m$ u. L The market had anticipated the Fed would buy between 500 billion dollars and 1 trillion dollars in treasury bonds to drive interest rates lower and encourage lending and spending.- } }4 E \" f+ _' c- W# R
However, a report from The Wall Street Journal said the Fed's bond purchases might amount to a few hundred billion dollars over several months, which would be much less than those previous predictions.- `: y6 b% @8 j+ c1 F5 z
Some investors trimmed their dollar's short betting in response to the news that the Fed's new monetary easing policy might take a smaller and longer approach.' U& L3 G( ~7 g: [: L, H. S" S
The euro against the dollar fell below 1.38 in late Wednesday trading session. However, many analysts believed the expectation on the Fed's quantitative easing policy and European central bank' s gradual liquidity withdrawing would prevent the euro from falling below 1.35 against the dollar in the next month or two.
; ~. h; }, X& P3 L In late Wednesday trading, the dollar bought 81.71 Japanese yen, comparing with 81.49 late Tuesday, and the euro fell to 1.3761 dollars from 1.3850.
1 \- m( X" {. I2 {" A4 A$ |! ]5 ^5 { The British pound fell to 1.5758 dollars from 1.5835. The dollar rose from 0.9861 to 0.9917 against Swiss francs, and also rose to 1.0298 Canadian dollars from 1.0246. |