Dollar slips in forex trading as Fed bond-buying speculation mounts
City Index November 15, 2012 5:15 PM
<p>The dollar has slipped in forex trading today as speculation that the Federal Reserve will start a new bond-buying scheme mounts.</p>
The dollar has lost ground versus the euro and the pound in forex trading this morning (November 15th), as speculation mounts that the Federal Reserve (Fed) in the US will launch a new bond-buying scheme in the new year.
Minutes from the central bank shows that "a number" of senior officials want to see the current asset-purchases programme, named Operation Twist, replaced.
Operation Twist expires in December and involves selling short-term Treasury bonds using the proceeds to buy longer-term bonds with the aim to cut long-term loan rates.
First launched in September of last year, the Fed has spent as much as $267 billion (£168.5 billion) on this stimulus programme.
The Fed is also continuing with its third round of quantitative easing, which sees the central bank buy $40 billion in mortgage-backed bonds per month for an open-ended period.
At 11:05 GMT today, the dollar was 0.2 per cent lower against the euro to $1 buying €0.783, while in trading with the pound it slipped by 0.08 per cent to £0.630.
Find out about the dollar and forex trading at City Index.
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