The euro fell against the dollar Wednesday as investors digested new U.S. plans to prop up the world's largest economy and financial system.
The 16-nation euro bought $1.3473 in European morning trading, down from the $1.3518 late Tuesday in New York.
The euro had risen to the $1.37 level in the past week after the U.S. government said it would flood the financial system with money and buy up $300 billion worth of long-term Treasurys and $1.25 trillion in mortgage-backed securities. Those moves can also trigger inflation and devalue the dollar, but could help exports from the U.S.
The European Central Bank has so far said it has no plans for similar money injection programs.
On Monday, meanwhile, the U.S. government fleshed out a plan that would combine public and private money to scoop out up to $1 trillion worth of soured assets from banks' balance sheets.In other trading Wednesday, the British pound bought $1.4637 compared with $1.4721, while the dollar bought 97.49 Japanese yen, compared with 97.89 late Tuesday in New York
The 16-nation euro bought $1.3473 in European morning trading, down from the $1.3518 late Tuesday in New York.
The euro had risen to the $1.37 level in the past week after the U.S. government said it would flood the financial system with money and buy up $300 billion worth of long-term Treasurys and $1.25 trillion in mortgage-backed securities. Those moves can also trigger inflation and devalue the dollar, but could help exports from the U.S.
The European Central Bank has so far said it has no plans for similar money injection programs.
On Monday, meanwhile, the U.S. government fleshed out a plan that would combine public and private money to scoop out up to $1 trillion worth of soured assets from banks' balance sheets.In other trading Wednesday, the British pound bought $1.4637 compared with $1.4721, while the dollar bought 97.49 Japanese yen, compared with 97.89 late Tuesday in New York
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