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FOREX-Dollar gains after Fed statement

Published 12/16/2009, 02:39 PM
Updated 12/16/2009, 02:42 PM

(Recasts, adds quote, updates prices)

NEW YORK, Dec 16 (Reuters) - The U.S. dollar gained against the euro and yen on Wednesday after the Federal Reserve's Federal Open Market Committee left benchmark interest rates unchanged as expected and reaffirmed they will be low for some time.

"Overall, I would say the statement is broadly neutral, with hawkish and dovish elements," said Nick Bennenbroek, head of FX strategy at Wells Fargo in New York. "The Fed I would say is less pessimistic about prospects for the U.S. economy."

The euro was last down 0.2 percent at $1.4508, the session low, after spiking up, then spiking down -- as investors debated the headlines in the wake of the announcement.

The dollar was up 0.4 percent at 89.97 yen. (Reporting by Nick Olivari and Gertrude Chavez-Dreyfuss; Editing by Theodore d'Afflisio)

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