The U.S. dollar was lower on Thursday, as it gave up prior gains after the Federal Reserve cut rates as expected.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.2% to 98.34 as of 11:35 AM ET (15:35 GMT).
The Fed lowered interest rates for the second time this year to the 1.75%-2% range from the previous 2%-2.25% range. Still, guidance from Fed Chairman Jerome Powell indicated that the central bank didn’t expect a slowdown in the economy anytime soon. Powell noted that "if the economy does turn down, then a more extensive sequence of rate cuts could be appropriate."
Elsewhere, USD/CAD declined 0.1% to 1.3268. The Japanese yen, which is seen as a safe haven in times of market turmoil, recovered from an earlier low of 107.79 after the Bank of Japan kept its short-term rate target at -0.1%. USD/JPY fell 0.4% to 108.04.
The pound inched up, boosted by the Bank of England leaving interest rates on hold as it waits for more clarity on Brexit. The bank said that if Brexit uncertainty persists, inflation will likely become weaker. Staff expect inflation to remain below 2% target for the rest of this year.
GBP/USD rose 0.1% to 1.2484, while EUR/USD jumped 0.2% to 1.1053.
