The world's reserve currency fell near month lows on Thursday against the common currency of the European Union in the aftermath of the U.S. Federal Reserve noting it will leave interest rates low, according to Bloomberg.
For a second-straight day, the U.S. dollar dipped against the 18-nation monetary unit. Policy makers with the Fed decided to slash stimulus by $10 billion when two days of meetings adjourned on Wednesday but they said borrowing costs will remain low.
"There were those speculating that the Fed would have to come up with a more hawkish commentary and obviously they have been disappointed," strategist Neil Mellor with Bank of New York Mellon in London told Reuters on Thursday. "Nothing has really changed from the past few days, so there will be a propensity to buy some euros, and probably sterling in lockstep with that."
On Thursday morning in London, the Bloomberg Dollar Spot Index edged down roughly 0.3 percent.
Chair Janet Yellen said the body is pleased about the outlook for inflation while noting borrowing costs are likely to rise in 2015 and 2016, according to Reuters.
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