US dollar falls against most major currencies

The U.S. dollar fell against most major currencies as Richard Fisher, president of Federal Reserve Bank of Dallas, warned investors against overreacting to the U.S. central bank's tapering plans. U.S. dollar rallied last week as Federal Reserve Chairman Ben Bernanke said the Fed may start tapering its pace of bond purchases later this year, and may end them around mid 2014, if the economy continues to improve. During an interview Monday, Fisher said investors shouldn't overreact to the central bank's plans to reduce the pace of asset purchases. He agreed fully with Bernanke that the Fed should scale back on the stimulus. On the economic front, the May Chicago Fed National Activity Index, a monthly index designed to gauge overall economic activity and related inflationary pressure, stood at minus 0.30 in May, up from minus 0.52 in April. In late New York trading, the euro dropped to 1.3123 dollars from 1.3139 of the previous session and the British pound increased to 1.5442 dollars from 1.5427. The Australian dollar gained to 0.9274 dollars from 0.9247. The dollar bought 97.72 Japanese yen, lower than 97.78 yen of the previous session. It edged down to 0.9330 Swiss francs from 0. 9341 and moved up to 1.0495 Canadian dollars from 1.0457.