Dollar Climbs as Fed Stimulus Fuels Economic Concern, Refuge Bid

The dollar rose against all of its major counterparts after the Federal Reserve’s plan to shift holdings of Treasuries to keep the economy from falling into recession increased the refuge appeal of the currency.

Brazil’s real and South Africa’s rand were the biggest losers against the greenback as stocks and commodities tumbled. The U.S. currency rallied as the Federal Open Market Committee acted to increase holdings of longer-maturity Treasuries and reinvest in mortgage securities in a bid to limit borrowing costs and boost economic growth and jobs. Canada’s dollar traded above parity for the first time in more than a week the euro fell to a 10-year low against the yen.