The US dollar index was up by 0.5% at 92.23 at 2:19 p.m. ET after sitting in the red ahead of the announcement.
“The dollar – which for a while has looked extremely stretched having fallen more than 10% from its peak at the start of the year – rallied quite aggressively after the release of statement and projections and has stabilised near its highs throughout Chair Janet Yellen’s press conference,” said Craig Erlam, senior market analyst at OANDA, in emailed comments.
“Whether these moves will be maintained we’ll see over the next few days but with a number of dollar pairs having already stumbled, there is potential for an arguably long overdue dollar correction to take place.”
- Markets Insider
The central bank said Wednesday, as expected, that it will soon start trimming the $4.5 trillion balance sheet it built up after the recession. It left interest rates unchanged in a range of 1% to 1.25%.
The greenback has fallen about 9% versus a basket of its peers since President Donald Trump’s inauguration on January 20.
As for other FX news, here was the scoreboard at 2:14 p.m. ET:
- The euro was down by 0.6% at 1.1922 against the dollar. Earlier, data showed German PPI rose 2.6% year-over-year in August, above expectations of a 2.5% jump. The British pound is up 0.2% at 1.3526 against the dollar. Earlier, retail sales rose 1% month-over-month in August, above expectations of 0.2%. The Japanese yen is lower by 0.4% at 112.07 per dollar. The Canadian dollar is lower by 0.2% at 1.2322 per dollar.