US dollar remained under pressure on Wednesday against its major counterparts in reaction to the move of global central banks for reduction in their borrowing costs.

The single currency gained to 1.3446 against the US dollar on Wednesday as compared to 1.3329 on Tuesday’s late trading hours. The euro touched its intraday high of 1.3532 which also happens to be highest in last two weeks.

US Federal Reserve, ECB, the Bank of England, the Bank of Japan, Swiss National Bank and Bank of Canada decided to extend their credit swap lines to enhance the borrowing of other banks in lower cost. This step contributed a lot in easing in financial markets.

Senior currency strategist, David Watt from RBC Capital Markets commented, “The problem has been that traders have been attaching a stigma to banks that have to access central bank funding, making firms reluctant to use the option even though it’s been cheaper than the market-based rates, ” he further added, “Central banks are hoping the rate is so attractive that hitting the swap line makes business sense as opposed to signaling vulnerability, They hope if they draw enough institutions, the stigma will decline, stresses on the liquidity front will ease and that will ease some of the bearish demeanor towards the euro.”

The dollar index DXY which measures the greenback’s performance versus its six major rival currencies declined to 78.345 on Wednesday as compared to 78.990 on Tuesday’s North American Trading Session.

The US dollar fell to 77.53 versus the Japanese Yen on Wednesday as compared to 77.85 on late Tuesday. The greenback also declined 1.3 percent versus the Canadian dollar while slipped 1 percent against the Swiss franc.

The British Pound surged to 1.5703 against the US dollar on Wednesday as compared to 1.5610 on Tuesday’s late trading hours.