Dollar gains on euro amid global growth worries

WASHINGTON: The dollar rebounded against the euro Thursday amid more worries about global growth and after the Fed held off from announcing any new significant stimulus in its policy meeting.

At 2100 GMT the euro had lost 1.25 percent on the greenback from Wednesday, falling to $1.2543 from $1.2702.

The yen traded mixed: the euro dropped to 100.68 yen from 100.97 yen, while the dollar gained to 80.26 yen from 79.49 yen.

The dollar's gain came a day after the Federal Reserve disappointed some expectations that its policy board would decide to launch a new quantitative easing program that would inject more money into the economy to boost growth.

The Fed slashed its annual growth projection, but only renewed its less potent Twist" stimulus.

"Market participants were largely disappointed that another massive liquidity package was not being unveiled (although the reaction this time around was far less severe). The US Dollar has emerged as the top performer in the aftermath of the announcement," said Christopher Vecchio of DailyFX.

Also helping the dollar were poor purchasing manager index reports from China and Europe, both signalling slowing industrial growth.

The British pound fell in parallel to the euro, moving to $1.5590 from $1.5719.

The dollar gained to 0.9572 Swiss francs from 0.9455 francs.