Investing.com - The euro rose to a more than one-week high against the dollar on Thursday, one day 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 0.29% to 1.3632, the highest since June 9, from 1.3543 late Wednesday.
The pair was likely to find support at 1.3550 and resistance at 1.3670.
The dollar weakened broadly after the Fed gave no indication of when interest rates could start to rise at the conclusion of its two-day meeting on Wednesday. In addition, the Fed’s forecast of where interest rates might reach in the long term fell from 4% to 3.75%.
The central bank cut its bond purchases by $10 billion a month, to $35 billion, saying there was "sufficient underlying strength" in the U.S. economy to continue tapering.
The central bank acknowledged the recent increases in inflation and drop in unemployment, but Fed Chair Janet Yellen said no formula was in place for when interest rates would start to rise.
The euro was boosted as borrowing costs in the peripheral euro zone fell back towards recent record lows on Thursday, as euro zone bonds advanced. Spain’s 10-year yield fell to 2.66%, while France 10-year yield dropped to 1.67%.
Euro zone bond yield have been driven lower since the European Central Bank cut all its main rates to record lows and imposed negative deposit rates for the first time earlier this month, pushing investors into riskier assets to boost returns.
The euro was also higher against the yen, with EUR/JPY climbing 0.20% to 138.77.
Elsewhere, the dollar was lower against the yen, with USD/JPY slipping 0.09% to 101.82, off the one-week high of 102.14 reached Wednesday ahead of the Fed announcement.