Nikkei drops following Fed announcement

<p>The Nikkei dropped by 1.7 per cent today.</p>

The Nikkei shares index has fallen today (June 20th), eroding some of the gains amassed in the first three days of the week.

It lost 1.7 per cent of its value over the course of the day's trading on the back of the news the Federal Reserve could look to trim its bond-buying programme later this year.

Chairman of the Fed Ben Bernanke confirmed the possibility of further action being taken at a press conference held yesterday evening.

According to a Reuters report, the Nikkei ended the day 1.7 per cent lower at 13,014.58 points. This was down from the one-week high of 13,245.22 that hit on Wednesday.

Although the Nikkei has been able to remain above 13,000, it did dip below this level on several occasions during the course of trading today.

Even though the Nikkei rose by 1.8 per cent yesterday, it is still at risk of recording a fifth weekly drop in its value in a row.

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