Dollar Weakens After Fed Statement

By Joseph Adinolfi Markets MarketWatch Pulse

The dollar weakened against its main rivals after the Federal Reserve released an updated policy statement that Omer Esiner, chief market analyst at Commonwealth Foreign Exchange, said was "moderately more cautious than its last statement." After rising initially after the released, the dollar soon turned lower. Esiner said the statement weighed on the dollar because it suggested the Fed might revise down its forecast for four interest-rate hikes this year at its next meeting. The dollar initially spiked after the statement, but quickly turned lower. It was recently trading at 118.68 yen , compared with 118.31 yen late Tuesday. The euro rose to $1.0883, compared with $1.0864 late Tuesday. The pound fell to $1.4252, compared with $1.4349.

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