Dollar Turns Negative After Fed Statement

By Ryan VlastelicaMarketsMarketWatch Pulse

The U.S. dollar pivoted lower on Wednesday after the Federal Reserve said it would begin winding down its bond holdings "relatively soon." The central bank left rates unchanged as expected but the tone of the updated policy remarks might imply to investors that it is taking a go-it-slow approach, bearish for the buck. The U.S. dollar index traded at 94.05, in slightly negative territory, and off a high of 94.29 that had been hit earlier in the session. It saw a particular dip against the euro , which traded at $1.1688 from $1.1649 late Tuesday. Prior to the Fed statement, it had traded around $1.1630. Against the Japanese yen , the dollar changed hands at �111.74, compared with �112.13 prior to the announcement, and compared with �111.90 late Tuesday.

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