Fed's decision hits euro vs. USD

The euro weakened by 1.49 cents (1.06%) against the US dollar yesterday to close the day at $1.3927.

• In early trading yesterday the euro fell against the dollar, after the European Central Bank announced it would lend 442.24 billion euros to banks in its first ever one-year refinancing operation.
  
• After briefly heading into positive territory, the single currency then fell against the dollar despite a US government report showing durable goods orders unexpectedly rose 1.8% in May.
  
• Finally, the US Fed’s decision to leave interest rates on hold and not extend its quantitative easing program plunged the single currency further into the red. Its decision to ‘wait-and-see’ after a slowing in the pace of economic decline recently prompted traders to buy into the greenback.
  
• In trading so far today, the euro has risen against the dollar as investors continue to dissect yesterday’s important announcements.
  
• There are no major announcements due in the eurozone today, whilst in the US Unemployment Claims and annualised first-quarter GDP data is out at 13.30 BST. At 15.00 BST Fed Chairman Ben Bernanke is set to testify in front of a House committee.