Investing.com - The dollar was lower against the euro and the yen on Thursday after the Federal Reserve indicated that interest rates will remain low for a considerable time after the bank’s asset purchase program ends.
EUR/USD was up 0.17% to 1.3617 from 1.3543 late Wednesday.
The pair was likely to find support at 1.3550 and resistance at 1.3670.
At the conclusion of its two-day meeting on Wednesday, the Fed cut its bond purchases by another $10 billion a month, to $35 billion, saying there was "sufficient underlying strength" in the U.S. economy to continue tapering.
Despite this, the Fed also lowered its forecast for growth this year to a range of 2.1% to 2.3% from 2.8 to 3.0% previously, due to "unexpected contractions" in the first quarter as a result of the unusually harsh winter. The central bank still acknowledged a broad improvement in the labor market.
The Fed said it expects the federal-funds rate, currently close to zero, to reach 1.2% by the end of next year and 2.5% by the end of 2016, a slightly faster rate of tightening than formerly expected.
But the forecast did not bring forward the timing for the first rate hike, disappointing many investors and weighing on the dollar.
The dollar was lower against the yen, with USD/JPY slipping 0.12% to 101.78, off the one-week high of 102.14 reached Wednesday ahead of the Fed announcement.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.18% to 80.36, the lowest since June 6.