Investing.com - The dollar was trading close to two-week highs against the euro on Thursday and was steady close to almost one-week highs against the yen after the Federal Reserve indicated that rates could rise as soon as next year.
EUR/USD was trading at 1.3837, not far from the two week lows of 1.3808 struck on Wednesday.
The pair was likely to find support at 1.3808 and resistance at 1.3865.
At the conclusion of its two-day policy setting meeting on Wednesday, the Fed said it would reduce its monthly bond purchases by an additional $10 billion to $55 billion.
The dollar rallied after Fed Chair Janet Yellen indicated that the bank could begin to raise interest rates about six months after the bond-buying program winds up, which is expected to happen this fall.
The Fed statement also emphasized that economic conditions could mean that rates would remain on hold at record lows for some time, even after inflation and employment return to their longer-run trends.
The central bank also updated its forward guidance, discarding the 6.5% unemployment threshold for considering when to increase borrowing costs and said it will look at a wide range of information.
USD/JPY was trading at 102.28, close to the four-day highs of 102.67 reached on Wednesday.