Dollar briefly extends losses vs euro, erases gain vs yen after Fed statement

NEW YORK, July 31 Wed Jul 31, 2013 2:15pm EDT

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NEW YORK, July 31 (Reuters) - The dollar briefly extended losses versus the euro and temporarily erased gains versus the yen on Wednesday after the U.S. Federal Reserve said offered not hints of a stimulus pullback.

The U.S. Federal Reserve said the economy continues to recover but is still in need of support, offering no indication that a reduction in the pace of its bond-buying stimulus program is imminent.

For now, the Fed will keep on buying $85 billion in mortgage and Treasury securities per month in its ongoing effort to bolster an economy still challenged by federal budget-tightening and weak growth overseas.

Against the dollar, the euro last traded up 0.1 percent at $1.3274. It traded at about $1.3286 before the Fed's announcement.

Against the yen, the dollar briefly turned negative but last traded up 0.2 percent at 98.16 yen. The dollar traded at around 98.28 yen before the Fed's announcement.

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