Dollar Extends Losses vs Euro on Bomb Threat Report

The dollar extended losses against the euro on Wednesday after a news report about a bomb threat in upstate New York.

The euro rose from around $1.3523, before trading back down again.

Traders also said technical factors also helped push the euro higher, with stops above and slightly below $1.3550.

A bomb threat briefly closed the New York State Thruway near the state capital Albany on Wednesday but the highway was soon reopened, state police said.

Police closed the service area of the Guilderland toll booth about 150 miles north of New York City.

The yen extended losses earlier on Wednesday after the European Central Bank said it intended to add 40 billion euros to the banking system to boost liquidity and steady financial markets.

The planned ECB cash injection should further ease tight liquidity conditions, making investors more comfortable with putting on risky carry trades, a strategy that involves selling the low-yielding yen to invest in assets with higher returns.

Higher U.S. stocks and a test of key technical resistance in the euro against the yen also accelerated the Japanese currency's decline, analysts said.

The ECB on Wednesday said it will hold a tender to add 40 billion euros in 91-day funds to the euro money market on Thursday.

Contact U.S. News


    Get the best of CNBC in your inbox

    › Learn More

Don't Miss

U.S. Video

  • After American Airlines severed ties with Orbitz over a pricing dispute, Daniel Kurnos, Benchmark Company senior analyst, and Mike Miller, Miller Air Group president, discuss if airlines are being held hostage by travel companies.

  • CNBC's Steve Liesman, and Lee Munson, Portfolio Asset Management CIO, discuss how the Fed has impacted asset prices and if exiting QE will freak the stock market.

  • Abigail Doolittle, Peak Theories, says the market is in for a 50 to 60 percent correction. Keith Fitz-Gerald, Money Map Press; Jack Bouroudjian, Index Financial Partners; and CNBC's Rick Santelli, discuss if stocks or bonds are performing better.