Dollar falls on planned Fed easing, re-opening economies

The dollar bounced on Thursday as the U.S. Federal Reserve said it might reveal more monetary easing, cutting expectations of a quick economic recovery. 

The dollar fell as re-opening economies lowered the demand for holding funds in dollars. 

The euro steadied ahead of a European Central Bank meeting later on Thursday. The yuan reached a two-week high as the Chinese economy is beginning to recover from the pandemic.

The dollar stood at 106.72 against the Japanese yen. It traded at 1.2455 against the pound. It was little changed at 0.9748 against the Swiss franc.

U.S. first-quarter GDP showed a 4.8% contraction. Fed Chairman Jerome Powell said that economic recovery would take longer.

The euro stood at 1.0866 against the dollar and at 87.26 pence against the pound.

The Australian dollar traded at $0.6542, nearing its seven-week high.