Dollar Rises, But Quickly Pares Gains, After Fed Decision

By Markets MarketWatch Pulse

The dollar briefly strengthened against its main rivals Wednesday after one member of the Federal Reserve's policy setting committee voted to raise interest rates, but quickly pared its gains. The euro briefly broke below $1.13 after the release of the Fed's policy statement, from $1.1340 shortly beforehand. But the greenback turned lower again as investors judged there wasn't enough support in the statement to significantly increase the likelihood of an interest rate hike at the central bank's June meeting. The dollar recently bought 111.54 yen, compared with 111.33 late Tuesday. The euro traded at $1.13, little-changed on the day. The pound traded at $1.4526, compared with $1.4579 late Tuesday.

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