American focus: dollar rose

The dollar rose against the euro and the yen after the Federal Reserve refrained from new actions to stimulate the economy. The Fed kept intact its program to exchange $400 billion in shorter-term holdings for longer-term debt, dubbed Operation Twist and scheduled to expire in June. Policy makers led by Bernanke are holding off on additional steps to boost the economy amid signs the more than two-year expansion is gaining strength. Still, the jobless rate isn’t declining fast enough to satisfy central bankers, who repeated their view today that borrowing costs are likely to remain “exceptionally low” at least through late 2014.

The dollar fell earlier as U.S. durable-goods orders dropped by the most in three years. U.S. durable goods orders slid 4.2 percent in March, the biggest decrease since January 2009, after a revised 1.9 percent gain the prior month. Economists forecast a 1.7 percent decrease.

The pound fell today from a seven-month high versus the dollar after a government report showed the U.K. slipped back into recession, backing the case for the Bank of England to extend its asset-purchase program.