* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Euro and pound at 3-month highs against the dollar
* Fed makes no policy changes, pledges to keep bond buys
* Fed makes no yield curve control announcement
(Recasts, adds Fed decision, new comment, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, June 10 (Reuters) - The dollar extended losses, dropping to a fresh three-month low against
a basket of major currencies on Wednesday after the Federal Reserve made no policy changes, as expected,
and pledged to continue its asset purchases aimed at stabilizing a U.S. economy that has been ravaged by
the novel coronavirus.
The Fed also did not announce any measures to cap the rise of bond yields, as some has speculated.
In a press briefing, Fed Chairman Jerome Powell said the committee did discuss controlling the yield
curve but said its effectiveness remained an "open question." The greenback fell to three-month troughs against the euro, sterling and Swiss franc after the Fed
statement. It slid to a three-week low versus the yen.
The Fed, in its statement, on Wednesday after a two-day meeting, repeated its promise of continued
extraordinary support for the economy as policymakers projected a 6.5% decline in gross domestic product
this year and a 9.3% unemployment rate at year's end. It also promised to maintain bond purchases at "the current pace" of around $80 billion per month in
Treasuries and $40 billion per month in agency and mortgage backed securities.
"This is consistent with what the market pretty much expected, that the Fed wouldn't do anything,"
said Marc Chandler, chief market strategist, at Bannockburn Forex in New York. Chandler had expected the
Fed to announce a yield control policy, but thought that the U.S. central bank could announce it by the
end of the summer.
He added that the Fed's growth forecasts suggested a V-shaped recovery.
Overall, Chandler said the Fed statement showed that the dollar is still headed lower.
In mid-afternoon trading, the dollar fell about 0.4% against a basket of major currencies to 95.882
=USD , after earlier sliding to 95.714, a level not seen since mid-March.
The euro EUR=EBS , the pound GBP=D3 and the Swiss franc CHF=EBS all hit fresh three-month highs
against the dollar.
The euro rose as high as $1.1422, sterling reached $1.2812, with the dollar hitting a three-month low
of 0.9425 franc versus the Swiss currency.
The dollar also fell against the yen to a three-week low of at 106.99 JPY=EBS , and was last down
0.6% at 107.08 yen.
========================================================
Currency bid prices at 2:53PM (1853 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1383 $1.1340 +0.38% +1.54% +1.1422 +1.1324
Dollar/Yen JPY= 107.1100 107.7200 -0.57% -1.61% +107.8700 +107.0000
Euro/Yen EURJPY= 121.94 122.15 -0.17% -0.01% +122.3600 +121.5900
Dollar/Swiss CHF= 0.9433 0.9506 -0.77% -2.53% +0.9514 +0.9426
Sterling/Dollar GBP= 1.2763 1.2729 +0.27% -3.74% +1.2812 +1.2707
Dollar/Canadian CAD= 1.3385 1.3414 -0.22% +3.07% +1.3437 +1.3315
Australian/Doll AUD= 0.7015 0.6961 +0.78% -0.09% +0.7061 +0.6933
ar
Euro/Swiss EURCHF= 1.0741 1.0781 -0.37% -1.02% +1.0790 +1.0728
Euro/Sterling EURGBP= 0.8919 0.8908 +0.12% +5.49% +0.8922 +0.8884
NZ NZD= 0.6545 0.6512 +0.51% -2.84% +0.6583 +0.6496
Dollar/Dollar
Dollar/Norway NOK= 9.2819 9.2639 +0.19% +5.74% +9.3782 +9.2000
Euro/Norway EURNOK= 10.5705 10.5180 +0.50% +7.45% +10.6437 +10.4550
Dollar/Sweden SEK= 9.1730 9.1716 +0.07% -1.87% +9.2520 +9.1438
Euro/Sweden EURSEK= 10.4452 10.4382 +0.07% -0.23% +10.5011 +10.4096