The dollar fell against most of its counterparts

The dollar fell against most of its counterparts after the Federal Reserve said it would keep its asset purchase program in an effort to boost the U.S. economy.

The U.S. currency extended a loss of 3.5 percent this month against the euro, the Fed said that after monetary policy meeting will continue with its plan of 600 billion U.S. dollars to purchase the Treasury scheduled to run until June. The central bank said last month it would inject more money into the economy with the program, known as quantitative easing, to try to spur inflation and employment. yields on Treasury bonds remained high.

"It was largely a repeat of the November session," said Nick Bennenbroek, head of currency strategy at Wells Fargo & Co. in New York. "They are clearly keeping the policy course they are."

The dollar fell 0.2 percent to $ 1.3410 per euro at 2:35 pm in New York from $ 1.3391 yesterday. Was little changed at 83.40 yen.

The dollar index, IntercontinentalExchange Inc. uses to track the dollar against the currencies of six major U.S. trading partners, including the euro, yen and sterling, fell 0.1 percent to 79,236. Is

Fed Policy

The Fed left its benchmark interest rate unchanged at zero to 0.25 percent, where it has been since December 2008.

Shopping will "promote a stronger pace of economic recovery" and keep prices stable "over time," said the Federal Open Market Committee in a statement today in Washington. Unemployment is very high, said the central bank, reiterated his promise to leave interest rates low for a "prolonged period".

In its first round of purchases of assets, ended in March, the Fed bought 1.75 trillion U.S. dollars in securities, including $ 300 billion in Treasuries in an effort to stimulate economic growth strong enough to reduce unemployment near a maximum of 26 years.

In its second round of quantitative easing, the Fed has bought 114 billion U.S. dollars of Treasury bonds. The New York Fed has set dates for about $ 105 million in the purchase of Treasury for the period from December 13 through January 11

Economic Outlook

While reports last week showed that U.S. exports in October reached a confidence level in two years and consumers rose in December to the most since June, the Labor Department reported Dec. 3 that the unemployment rate rose for the first time since August of last month.

U.S. sales retail rose 0.8 percent, higher than estimated, the Commerce Department figures showed today in Washington. The median forecast of economists surveyed by us called for an increase of 0.6 percent.

The dollar index up 0.9 percent last week after President Barack Obama broke a tie on extending tax cuts for the middle class made by the administration of George W. Bush.

Obama said he would accept lower rates of income tax high earners, dividends, capital gains and multimillion dollar properties for the next two years in exchange for extending federal unemployment insurance. The current tax rates, enacted in 2001 and 2003, will increase to 31 December.

The measure is expected to boost inflation. Yields on 10 - year Treasury note rose to a maximum of six months of 3.39 percent yesterday.

The dollar's decline against the euro this month has been prepared by investor concern that the European crisis of sovereign debt will be extended throughout the region.

Union leaders attending a summit on December 16 and 17, with Italy, Belgium and Luxembourg for euro-zone bonds, while Germany and France oppose the idea. German Chancellor Angela Merkel and French President Nicolas Sarkozy said on December 10 oppose the bond joint and rejected any increase in the size of a rescue fund set up in May.