U.S. Dollar Falls After Fed

The U.S. dollar wallowed at its lowest in nearly two weeks against a basket of major currencies early on Thursday, having beat a hasty retreat after the Federal Reserve signaled that interest rates will stay low for a while yet.

New projections suggested the Fed saw rates rising a bit more in 2015 and 2016 than it previously forecast, but officials lowered their long-term rate target. The Fed also sounded comfortable about the inflation outlook despite recent signs of a pick-up in price pressure.

As a result, U.S. Treasury yields fell, with the benchmark 10-year rate dropping back below 2.6 percent.  The dollar index unwound all of the gains made in the lead-up to the Fed meeting. It slipped 0.3 percent and fell as far as 80.365, a low last seen on June 9.


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