www.stocktwits.com/chfx -Dollar falls on more unwinding of bullish bets after Fed  * Last weeks dovish Fed statement still weighing on dolla...

Dollar falls on more unwinding of bullish bets after Fed

-Dollar falls on more unwinding of bullish bets after Fed 

* Last weeks dovish Fed statement still weighing on dollar 
* Euro strengthens after Draghi comments 

By Sam Forgione 
NEW YORK, March 23 (Reuters) - The U.S. dollar fell for a 
second straight session against a basket of major currencies on 
Monday after traders unwound bullish dollar positions on the 
likelihood that Federal Reserve policy will be accommodative 
over the near term. 
The dollar added to its losses against the euro following a 
Fed statement on March 18 that suggested a less aggressive 
timetable for hiking interest rates. Last week was the dollars 
worst week against the euro since late 2011. 
The market is still positioned long dollars, short euros, 
so its vulnerable to any kind of correction, said David 
Gilmore, partner at Foreign Exchange Analytics in Essex, 
Connecticut, on the unwinding of long-dollar bets. The dollars 
weakness against the euro last week came after it hit 12-year 
highs against the currency. 
The euro continued to strengthen against the dollar after 
European Central Bank President Mario Draghi said he expected 
consumer prices to rise gradually by the end of the year even if 
they might remain very low or negative in the months ahead. 
Analysts said traders took this as a sign that the ECB may 
end its bond-buying scheme early, though Draghi said it intended 
to carry out purchases at least until end-September. 
Draghis optimistic comments...added fuel to the recovery 
in the euro, said Kathy Lien, managing director at BK Asset 
Management in New York. 
Lien also said that traders who had bet against or shorted 
the euro repurchased the currency ahead of Tuesdays release of 
euro zone manufacturing data for March. She said traders 
anticipated that the data could show improvement on the heels of 
stronger German industrial production data, which would support 
the euro further. ID:nL5N0W80L7 
The euro was last up 1.31 percent against the dollar at 
$1.09650 EUR=EBS , not far from a nearly two-week high of 
$1.10625 hit last week. The dollar was last down 0.24 percent 
against the Japanese yen at 119.750 yen JPY=EBS . 
The dollar was down 1.2 percent against the Swiss franc 
CHF=EBS at 0.96460 franc, not far from a two-week low of 
0.96295 franc hit last week. The dollar index, which measures 
the greenback against a basket of six major currencies, was last 
down 1.07 percent at 96.860. 
On Wall Street, U.S. stocks were little changed, with the 
SP 500 .SPX last up 0.06 percent. Benchmark 10-year U.S. 
Treasury notes US10YT=RR were last up 5/32 in price to yield 
1.91 percent. ID:nL2N0WP1FA ID:nL2N0WP1P6 

(Editing by Peter Galloway and Diane Craft) 
((Sam.Forgione@thomsonreuters.com; +1-646-223-6189; Reuters 
Messaging: sam.forgione.thomsonreuters.com@reuters.net)) 

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