* Dollar rises against euro, falls vs yen
* Fed delivers expected cuts of $10 billion in monthly bond
By Michael Connor
NEW YORK, Jan 29 The dollar rose against the
euro on Wednesday after the U.S. Federal Reserve cut $10 billion
from its monthly bond-buying stimulus program.
The greenback initially moved little against the yen on the
widely anticipated Fed policy move that contained no surprises
but widened its losses to over 1 percent in later trade, as U.S.
stocks sold off.
The dollar was also up against the Swiss franc but fell shy
of the session's high of 0.9009 in mid-afternoon trading
after the Fed's meeting, its last with Ben Bernanke as Fed
The Fed is keeping to a low-interest-rates course, an
economist said, even with Janet Yellen taking the chair on
"From now and the next meeting, they will monitor the
contagion risk from emerging markets to the U.S. economy," said
Neil Dutta, head of U.S. economics at Renaissance Macro Research
in New York. "There' some tightening of financial conditions
from the EM turmoil but that's not going to keep the Fed up at
The U.S. central bank will trim another $10 billion from its
stimulus program in March barring surprises, Dutta said.
The dollar late on Tuesday had risen against the yen and
Swiss franc - traditional safe-haven currencies - after a
surprisingly aggressive interest rate hike by the Turkish
central bank in a bid to shore up its currency, which has shed
over 3 percent since Friday.
But the dollar's gains faded as doubts surfaced whether
these emergency efforts could offset the political and economic
problems that could bog down faster-growing economies. That view
muted any positive impact when South Africa later unexpectedly
raised its policy rate.
The South African Reserve Bank became the third key emerging
market central bank this week to tighten rates, raising its key
rate by half a percentage point to 5.5 percent.
The dollar index was little changed at 80.573.
In afternoon trading, the euro was at $1.3654, down
0.1 percent, while the dollar fell 0.8 percent to 102.06 yen
, after touching a low of 101.83.