Dollar Tumbles on Aggressive Fed Move
The dollar tumbled Wednesday afternoon after the Federal Reserve surprised markets by escalating its quantitative-easing program, signaling a more aggressive approach to keeping longer-term yields low and stabilizing credit markets in the U.S.</br></br>The dollar sold off sharply and broadly after the Fed said it would expand its purchases of mortgage-backed securities by an additional $750 billion and spend as much as $300 billion to purchase Treasurys.</br></br>The euro reached $1.3499, its highest level since Jan. 9, after the Fed's statement, marking one of its biggest intraday gains.</br></br>The dollar's selloff was widespread, with the currency moving sharply lower against the yen, Swiss franc, pound and Canadian dollar as well as a range of emerging-market currencies.</br></br>"The U.S. dollar took a significant hit right across the board," said Dustin Reid, director of G11 foreign-exchange strategy at RBS Greenwich Capital Markets in Chicago.