FOREX-Dollar jumps vs yen after Fed creates facility

Tue, Oct 7 2008, 13:33 GMT
http://www.afxnews.com

NEW YORK, Oct 7 (Reuters) - The U.S. dollar jumped against the yen but fell against the euro on Tuesday after the Federal Reserve moved to backstop the U.S. commercial paper market.

The dollar last traded at 102.57 yen, up 0.7 percent on the day. The euro rose 1.2 percent to $1.3648.

"It looks like they've decided to step in and relieve the pressure there. It's risky asset positive, so stocks like it and the yen crosses like it," said Brian Dolan, chief currency strategist at Forex.com in Bedminster, New Jersey.

The Fed on Tuesday announced creation of a special-purpose facility with the Treasury Department's blessing to begin buying commercial paper in yet another emergency move aimed at calming chaotic financial markets. For more see [ID:nN07426060].

(Reporting by Wanfeng Zhou and Steven C. Johnson; Editing by James Dalgleish)

((wanfeng.zhou@thomsonreuters.com; +1 646 223 6304; Reuters Messaging: wanfeng.zhou.reuters.com@reuters.net)) Keywords: MARKETS FOREX

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