The U.S. dollar declined against its most major counterparts in the Asian session on Friday as sentiment improved after widely anticipated announcement of further stimulus from the Federal Reserve.
The Federal Reserve on Thursday announced a plan to buy $40 billion of agency mortgage-backed securities each month to bolster economic growth.
While launching a third round of quantitative easing, the Fed also extended its vow to keep interest rates at rock-bottom rates to mid-2015. Policy makers also decided to keep in place the Operation Twist program that swaps short-term bonds for longer-term assets.
The greenback slipped to a 4-month low of 0.9337 against the franc and the next support level for the greenback-franc pair is seen at 0.92. The pair closed yesterday's New York session at 0.9356.
Against the euro and the pound, the dollar declined to 4-month lows of 1.3035 and 1.6208, respectively. If the greenback slides further, it may target 1.31 against the euro and 1.625 against the pound. The euro-greenback and the pound-greenback pairs finished Thursday's deals at 1.2990 and 1.6157, respectively.
The greenback slipped to a 13-month low of 0.9654 against the Canadian dollar with 0.96 seen as the next downside target level. The greenback ended yesterday's American deals at 0.9686 against the loonie.
The buck also underperformed against its Australian and NZ counterparts, sliding to a 5-week low of 1.0590 and a 6-month low of 0.8355, respectively. On the downside, the greenback may target 1.07 against the aussie and 0.84 against the kiwi. At Thursday's close, the greenback traded at 1.0549 against the aussie and 0.8312 against the kiwi.
Food prices were down 0.5 percent on year in August, Statistics New Zealand said, after plunging 1.8 percent in July.
On a monthly basis, food prices were up 0.1 percent after adding 0.2 percent in the previous month.
Looking ahead, Eurozone CPI for August and employment data for the second quarter are slated for release in the European session.
The U.S. advance retail sales, CPI, industrial production - all for August, preliminary report of Reuters/University of Michigan's consumer confidence index for September, business inventories report for July will be released in the New York morning session.
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Forex News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.