Dollar sinks after Fed offers detail on low rates

Published on NewsOK Modified: December 12, 2012 at 3:18 pm •  Published: December 12, 2012
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NEW YORK (AP) — The dollar sank Wednesday against most major currencies after the Federal Reserve pledged to keep interest rates super-low until the unemployment rate falls below 6.5 percent.

The unemployment rate in November was 7.7 percent. The announcement was a shift from the Fed's previous policy, which was to keep interest rates super-low until at least the middle of 2015.

The Fed plan is contingent on low inflation. It implies a long period of low rates in the U.S., a key factor in keeping the value of the dollar low against other currencies that carry higher rates, such as the euro.

The euro rose to $1.3063 Wednesday from $1.3003 late Tuesday.

The British pound rose to $1.6139 from $1.6111. The dollar also slipped to 0.9263 Swiss franc from 0.9333, and to 98.43 Canadian cents from 98.66. The dollar rose to 83.20 Japanese yen from 82.50 yen.