Dollar Declines as Investors Speculate on Steps by Fed
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The dollar dropped against all of its 16 most-traded counterparts except the yen as investors speculated the Federal Reserve still may take further steps to spur the nation’s economic recovery.
The U.S. currency rose earlier as Fed Chairman Ben S. Bernanke refrained in congressional testimony from discussing specifics on stimulus, disappointing investors who were betting on signals for a third round of asset purchases by the central bank. The yen fell against all of its major peers as risk appetite rose and stocks rallied. Australia’s dollar climbed.