Summary US dollar continued to sink after the Federal Reserve surprised markets with a dovish rate stance.
NEW YORK (AFP) - The US dollar continued to sink Thursday after the Federal Reserve surprised markets with a dovish rate stance.
The greenback slid 0.9 percent against the euro, adding to Wednesday s 1.0 percent loss after the Fed halved its projections for interest rate increases this year, citing the slower global economy and turmoil in markets.
Analysts had expected the Fed to be more bullish at the end of its policy meeting.
At 2100 GMT the dollar was at $1.1317 per euro, and had also lost 1.2 percent at 111.44 yen.
The British pound, bolstered by an austere budget proposal with 3.5 billion pounds ($5.0 billion) in spending cuts, added 1.6 percent at $1.4479 after the Bank of England held its key interest rate unchanged, faced with a weak growth outlook at home and abroad.
"Given the Fed s adjusted forward guidance signals an even more gradual path higher in US interest rates than previously anticipated we expect that the US dollar could continue to consolidate lower in the near term," said Eric Viloria of Wells Fargo Securities.
"Meanwhile, we see an eventual resumption of US dollar strength over time as the Fed moves closer to resuming policy tightening."
