Dollar Drops To Lowest Level Since March As Fed Hints At Easing

Sept. 22 (Bloomberg) -- The dollar slid to the lowest level in six months versus a basket of currencies including the euro and yen on speculation the Federal Reserve’s willingness to ease monetary policy further will damp demand for U.S. assets.

The greenback weakened after U.S. policy makers said yesterday that they “will provide additional accommodation if needed” to spur growth. The euro rose for a third day versus the dollar as Portugal sold 750 million euros ($1 billion) of bonds and investors bought the maximum amounts at Spanish and Irish debt sales yesterday.

“The likelihood of more Fed easing has clearly increased, and that’s hurting the dollar,” said Stephan Maier, a foreign- exchange strategist at UniCredit SpA in Milan. “The market may be getting ahead of itself, anticipating too much easing.”

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