Investing.com - The dollar dropped against the other major currencies on Thursday, after the Federal Reserve left interest rates unchanged, as expected, and gave little indications on future policy moves.
USD/JPY dove 2.94% to 108.17, the lowest since April 18.
The Fed left interest rates unchanged close to zero on Wednesday and offered little guidance on future rate hikes.
In a statement released following its two-day meeting, the U.S. central bank said it will continue to "closely monitor inflation indicators and global economic and financial developments."
On the other hand, the yen strengthened broadly after the Bank of Japan kept the deposit rate at minus 0.1% and its asset purchases at ¥80 trillion per year. It also pushed back the expected data for reaching its 2% inflation target.
The decision came on the heels of data showing that consumer prices fell in March at the fastest pace in three years and household spending falling at the fastest rate in a year.
Ahead of the meeting expectations had been building for more monetary stimulus measures.
EUR/USD rose 0.28% to trade at 1.1355.
Earlier Thursday, official data showed that Germany’s unemployment rate remained unchanged at 6.2% this month, in line with expectations.
The dollar was lower against the pound and the Swiss franc, with GBP/USD up 0.31% at 1.4587 and with USD/CHF declining 0.35% to 0.9675.
The Australian and New Zealand dollars were stronger, with AUD/USD up 0.37% at 0.7627 and with NZD/USD rallying 1.06% to 0.6958.
In a widely expected move, the RBNZ left its benchmark interest rate at 2.25% at the conclusion of its monthly policy meeting.
The New Zealand central bank said that "monetary policy will continue to be accommodative" and added that “further policy easing may be required to ensure that future average inflation settles near the middle of the target range.”
Elsewhere, USD/CAD slid 0.29% to a fresh nine-month low of 1.2561, as higher oil prices continued to support the commodity-related loonie.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.66% at 93.77, the lowest since April 21.