The world's reserve currency continued its downward dip on Thursday, one day after the U.S. Federal Reserve announced that it will not taper economy-spurring monetary stimulus measures, Reuters reports.
The announcement by Chairman Ben Bernanke came as a surprise to analysts and investors whose confidence was high that the stimulus program would be reduced. The Fed chief said he will continue monitoring economic data to ensure the globe's largest economy remains healthy and can withstand a tightening of economic policy. In the wake of the Fed decision, the dollar was plunging on worldwide markets.
"Currency traders are just taking the dollar down across the board," chief investment officer Jonathan Lewis with Samson Capital Advisors told The Wall Street Journal on Thursday.
Reuters reports the dollar index, which measures the value of the greenback against major rivals, lost 1.1 percent on Wednesday, primarily drawn down by the afternoon announcement by the Fed. That marks the metric's largest loss in about two months.
The greenback dropped to its seven-month low against the common currency of the European Union on Thursday, according to The Wall Street Journal.
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