Categories
DALLAS — Foreign exchange rates surged to their highest level in almost a year Tuesday as the Federal Reserve increased its purchases of dollars and euros.
The move came as the central bank eased its easing measures and the U.S. dollar weakened against major currencies.
The dollar index rose 0.4 percent to 99.77 U.N. dollars per dollar.
The euro rose 0 .7 percent to $1.2264.
The central bank also boosted the amount of cash in its foreign exchange reserves to $4.1 trillion, its highest level since December 2010, in a move that will ease the flow of cash into the U-S.
financial system.
The Fed also increased the amount in its emergency cash program to $6.5 trillion, or 3 percent of gross domestic product, the largest of any central bank.
“It’s been a long time coming, and the Fed has made a big, bold move to boost the flow into the economy,” said Jim Phillips, chief market strategist at Wedbush Securities.
“The Fed’s decision to increase the amount it’s printing has lifted the dollar, and it has lifted foreign exchange prices, which in turn have lifted the value of the dollar.
It’s a good news story for the U
