The dollar fell for the fourth straight day against the euro on Thursday as investors digested the Federal Reserve's announcement of further stimulus on Wednesday which is likely keep the US currency weak for some time. Without higher rates or the Fed scaling back the amount of available dollars in the economy, the dollar should remain capped.

Strategists said future dollar moves were likely to be driven by news on the US fiscal issue and increasingly by US data after the Fed's decision, also announced on Wednesday, to explicitly link its policy path to unemployment and inflation. The euro was last up 0.1 percent at $1.3082, having hit a session low of $1.3039 and a session high of $1.3100. Some $4.58 billion in euros changed hands with a few hours left in the New York session, according to Reuters Dealing, compared with $6.076 billion in the entire global session a week ago. Against the yen, the dollar was at 83.56 yen, up 0.4 percent on the day, having hit a near nine-month high of 83.67.

Copyright Reuters, 2012