Dollar Tumbles After Fed Lowers Rate-hike Expectations

The dollar tumbled against many rivals after Federal Open Market Committee members lowered their expectations for where the Fed funds rate would be at year's end. The median reading on the Fed's quarterly "dot plot" of interest-rate expectations sunk to 0.625%, from 1.125% in December. The ICE U.S. Dollar Index, a measure of the greenback's strength compared to six rival currencies, was down 1.46% to 98.1010, more than a point lower from its reading earlier this morning. The euro rose to $1.0789, its highest level in eight days, after Fed minutes. The dollar had inched lower against its main rivals all session, as traders appeared reluctant to take large positions ahead of the Fed, said Mike O'Rourke, chief market strategist at Jones Trading. The lower rate hike expectations have given traders the impression that the Fed won't raise rates until its September meeting.