The dollar index fell 0.2% to 102.15 after the Federal Reserve held rates steady, as the Treasury yield curve steepened. The New Zealand dollar dropped as much as 1.74% after its central bank unexpectedly left rates at 2.75%, while the Bank of Canada raised its policy rate.
The US dollar fell against major currencies on Wednesday after the Federal Reserve held interest rates steady, as expected. The dollar index was down 0.2% at 102.15, while the euro rose 0.32% against the dollar to $1.1160 and the dollar slipped 0.04% against the yen to 157.87.
The Treasury yield curve steepened after Fed Chair Kevin Warsh began his press conference. The two-year Treasury yield fell 1.46 basis points to 4.722%, while markets priced in a nearly 85% chance of a Fed rate hike in December.
The New Zealand dollar fell as much as 1.74% to $0.5583 after the Reserve Bank of New Zealand held rates at 2.75%, surprising economists who had expected a hike. The Bank of Canada raised its key rate for the first time in more than three years; the Canadian dollar strengthened 0.37% against the US dollar to C$1.40 per dollar. Sterling rose 0.12% against the dollar to $1.3323 after the UK budget presentation.
