Dollar Retreats As Fed Cuts Rate-hike Outlook

By Joseph AdinolfiMarketWatch Pulse

The dollar plunged against both its major and emerging-market rivals Wednesday after the Federal Reserve cut its expectations for the number of interest-rate hikes expected in 2016. The euro jumped to $1.1172 after the Fed's updated monetary policy statement and forecasts were released, compared with $1.1089 shortly before. The dollar slipped to 113.07 yen, compared with 113.65 yen shortly before. The pound strengthened to $1.4225, from $1.4115 before. In the emerging-market space, the dollar slipped to 17.75 Mexican pesos after the announcement, from 17.92 pesos before. The dollar slipped against the Russian ruble , falling to 70.0 rubles from 70.6 rubles shortly before.

Copyright © 2016 MarketWatch, Inc.

Continue Reading Below