DOLLAR HITS 4-MONTH LOW AFTER FED PLAN

The dollar has hit a four-month low against the euro a day after the Federal Reserve said that it will launch another round of bond purchases to help boost the U.S. economy.

The euro rose as high as $1.3168, its highest point against the dollar since May 2. The euro was worth $1.2985 late Thursday.

The Fed announced Thursday that it will spend $40 billion a month to buy mortgage-backed securities for as long as it deems necessary.

Those purchases push interest rates lower and can weaken the dollar.

The British pound rose to $1.6244 from $1.6154. The dollar rose to 78.25 Japanese yen from 77.45 Japanese yen.

- The Associated Press

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