U.S. dollar continues to slide after QE3

The dollar has been under pressure lately and traded around a four-month low against the euro as investors awaited actual moves from the central bank to stimulate economic recovery.

After the Fed announced the decision to purchase additional agency mortgage-backed securities at a pace of 40 billion dollars per month, the dollar slid to a seven-month low against the Japanese yen and the lowest level in four months against the euro.

The sell-off continued on Friday, pushing the euro as high as 1. 3169 dollars, the first time above the 1.31-dollar level since early May.

The dollar index, which measures the greenback against a basket of six currencies, fell to 78.731, its lowest level since May.

In late New York trading, the euro gained to 1.3117 from Thursday's 1.2985. The British pound also rose to 1.6223 dollars from 1.6154.

The dollar slipped to 0.9274 Swiss francs from 0.9348, and fell to 0.9702 Canadian dollars from 0.9694.

However, the dollar gained against the Japanese yen as investors bet that the Japanese central bank will act next. The dollar bought 78.30 Japanese yen, up from 77.45 in the previous session.