Dollar rises after Fed statement

NEW YORK (AP) - The dollar strengthened against most other major currencies in volatile trading Wednesday after the Federal Reserve said it would continue an economic stimulus program.
The Fed said it will continue the program, called Operation Twist, through the end of the year. The program is designed to lower long-term interest rates and to boost borrowing and spending. The Fed will sell $267 billion in shorter-term securities and replace them with longer-term bonds.
The euro fell to $1.2672 from $1.2689 late Tuesday, reversing gains it made against the dollar earlier in the day.
In a press conference Wednesday, Fed Chairman Ben Bernanke said that the central bank would consider more aggressive action, such as another bond buying program. The Fed has launched two rounds of bond purchases, most recently in August 2010, to lower long-term interest rates and make stocks more attractive to investors.
In other trading Wednesday, the British pound fell to $1.5702 from $1.5730. The dollar rose to 79.47 Japanese yen from 79.04 yen, to 0.9477 Swiss franc from 0.9464 Swiss franc and to 1.0196 Canadian dollar from 1.0180 Canadian dollar.
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