Dollar rallies on Fed discount rate hike, sending euro below $1.35 for 1st time since May
By APFriday, February 19, 2010
Dollar rallies after Fed hikes discount rate
NEW YORK — The dollar is extending its rise a day after the Federal Reserve says it will bump up the rate that banks must pay for emergency loans.
Analysts say the rate hike is a sign of the central bank’s confidence in the U.S. financial sector.
The euro has fallen briefly below $1.35 for the first time in nine months before paring losses in New York. In late trading Friday, the euro is buying $1.3599, down from $1.3617 late Thursday, before the Fed announcement.
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