March 19, 2020 / 1:53 PM / 10 days ago

Dollar pared gains before Fed swap lines announcement

NEW YORK, March 19 (Reuters) - The U.S. dollar pared gains on Thursday before the U.S. Federal Reserve opened the taps for central banks in 9 new countries to access dollars in hopes of preventing the coronavirus epidemic from causing a global economic rout.

A global scramble for dollars has sent the greenback surging in the past two weeks. It hit a three-year high against the euro earlier on Thursday.

The Fed said the swaps will for at least the next six months allow the central banks of Australia, Brazil, South Korea, Mexico, Singapore, Sweden, Denmark, Norway and New Zealand to tap up to a combined total of $450 billion.

The euro hit a low against the dollar of $1.0727 at 8:13 a.m. EDT before rising back to $1.0821 just before the Fed announcement. It was last $1.0798.

The greenback hit a four-week high against the Japanese yen of 109.99 yen at 8:04 a.m. EDT, before declining to 109.64 just before the announcement. It was last 109.72.

Reporting by Karen Brettell, Editing by Chizu Nomiyama

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