The euro rose against the dollar Wednesday as traders seemed unconvinced by new stimulus measures announced by Washington on Tuesday.
The 16-nation euro bought $1.2940 in morning European trading, up from $1.2872 late Tuesday in New York. The British pound fell to $1.4444 from $1.4486 the night before, while the dollar slipped to 90.08 Japanese yen from 90.29 yen late Tuesday.
A $838 billion stimulus bill won approval in the U.S. Senate on Tuesday while Treasury Secretary Timothy Geithner said the new administration will run a "bad bank" with private investors to buy up toxic assets from financial institutions, which could support up to $1 trillion in purchases.
Meanwhile, the U.S. Federal Reserve said it will expand a key lending program to up to $1 trillion to unfreeze key consumer credit markets.
However, the moves did not fully convince markets that they would be completely effective, analysts said.
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