Dollar Climbed after FOMC

The dollar climbed modestly across the board after the FOMC monetary policy announcement. The euro dipped 20 pips to new day low at 1.3523 versus the dollar and the sterling fell from 1.9965 to 1.9930.

Ten Fed policy board members unanimously voted to leave interest rates unchanged at 5.25% as expected. However, the dollar was boosted slightly as the Fed said their predominant concern is still inflation.

The post-meeting statement showed no significant change from last meeting. The Fed said core inflation remains somewhat elevated and the economy is likely to expand at moderate pace over coming quarters. It said future policy adjustment will depend on economy and inflation outlook. The Fed did not indicate it is going to cut rates anytime soon, which relieved the market a little bit.