The dollar index was up 0.2 percent

The dollar index was up 0.2 percent on the day at 83.281 having fallen as far as 82.631 on Thursday, the lowest in two months. The Fed's historic move also drove Treasury yields down by the most in 26 years, reducing the dollar's yield allure, while raising inflationary risks in the right direction," said Christian Lawrence, an FX strategist at RBC Capital Markets. currency would be created, giving a huge boost to the supply of dollars. * Dollar under pressure as Fed's QE weighs * Dlr index on track for largest weekly fall since 1985 float (Changes byline and dateline, previous Sydney, updates quotes, prices) By Kirsten Donovan LONDON, March 20 (Reuters) - The dollar has fallen over 5 percent against the basket of currencies as investors feared the Federal Reserve's plans to buy $300 billion of longer-term government debt and vastly expand its balance sheet beyond the current $2 trillion meant more and more of the U.S.