How the USD Responded to the Fed Decision and Policy Statement

The U.S. Dollar (USD) showed a fluctuating performance on Wednesday, with the markets focusing on the Federal Reserve policy decision and statement.

The greenback began moving downwards in early trades in the American session, erasing most of its daily gains during the European session that also saw some fluctuations, but remained in the positive territory.

Shortly after the release of the Fed statement, which was issued after the Federal Open Market Committee (FOMC) decided to maintain interest rates unchanged and maintain the current pace of asset purchases, the Dollar Index (DXY) began to move slightly upwards, after reaching 92.47.

The index that measures the greenback’s performance against a basket of six major international currencies then approached its daily high near 92.72, and then began switching gears again and declined before the beginning of the Fed Chair Jerome Powell’s press conference and maintained a downwards trend and hit a daily low of 92.235.

DXY is down for the day by 0.12% at 92.322, as the Dollar lost 0.19% and 0.22% to the Sterling Pound (GBP) and the Euro (EUR) respectively.

Alternatively, the USD gained 0.11% against the Japanese Yen (JPY), with the USD/JPY pair reaching 109.91.

The Dollar Index has now registered its third consecutive daily loss, nearing its lowest level since mid-July.