The euro has recovered some of the ground it lost against the dollar as concerns grew that the U.S. Federal Reserve's anticipated move to buy Treasury bonds may be smaller and slower than previously expected.
The 16-nation euro rose to $1.3830 in Thursday morning European trading from $1.3761 in New York late Wednesday. The British pound edged up to $1.5772 from $1.5758 and the dollar slid to 81.32 yen from 81.71 yen.
The dollar had been hammered in recent weeks as investors expected the U.S. central bank to start buying government-backed bonds -- driving bond yields and interest rates lower.
The lower yields make other currencies and investments more attractive than Treasurys and the dollar. But a report Wednesday said the program could be smaller than anticipated, helping the dollar.
(source:businessweek.com)
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