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FOREX-Dollar holds gains vs euro after predictable Fed
October 24, 2012 / 8:16 PM / 5 years ago

FOREX-Dollar holds gains vs euro after predictable Fed

* Fed keeps bond-buying scheme, statement had little changes
    * Euro stays near one-week low vs dollar

    By Gertrude Chavez-Dreyfuss
    NEW YORK, Oct 24 (Reuters) - The dollar held gains against
the euro o n Wednesday after t he Federal Reserve p rovided no
surprises at its policy meeting, sticking to its st imulus plan
to boost a still sluggish U.S. economy and keeping rates low for
some time.
    The Fed said it is keeping its bond-buying program until the
job market improves. It added that the economy was slightly
firmer but the unemployment rate remained elevated.
    "The bank appeared content to sit idle and see how its
latest monetary prescriptions work their way through the
economy," said Joe Manimbo, senior market analyst at Western
Union Business Solutions in Washington. He added that the dollar
reac ted little to the Fed statement, pr etty much clinging to its
earli er gains .
    The euro was last down 0.2 percent against the dollar at
$1.2965. It declined for a second straight session,
earlier falling to a one-week low at $1.2918.
    Against the yen, the dollar was flat to slightly lower at
79.78 yen.
    Jim O'Sullivan, chief economist at High Frequency Economics
pointed out that the Fed was only too happy t o keep t his week's
meeting a non-event after the big changes in September and with
the U.S. presidential elections less than two weeks away.

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