Investing.com - The dollar fell to one-week lows against the other major currencies on Thursday, after the Federal Reserve left interest rates unchanged at the conclusion of its policy meeting on Wednesday.
In addition, the Fed cut the number of rate increases it expects this year to one from two and projected a less aggressive rise in interest rates next year and in 2018.
However, the U.S. central bank signaled that it could tighten monetary policy before the end of the year if the job market continued to improve.
USD/JPY climbed 0.42% to 101.73, off a one-month low of 100.10 hit overnight.
The yen had gained ground after the Bank of Japan refrained from cutting interest rates further into negative territory or expanding its asset purchase program on Wednesday, instead switching to targeting interest rates as a way to reach its inflation target.
EUR/USD gained 0.35% to 1.1229, the highest since September 16, while GBP/USD advanced 0.27% to 1.3068.
The Swiss franc was also higher, with USD/CHF declining 0.46% to 0.9694.
The Australian dollar was stronger, with AUD/USD up 0.55% at 0.7667, while NZD/USD held steady at 0.7339.
In a widely expected move, the Reserve Bank of New Zealand left its benchamark interest rate unchanged at 2.00% earlier, but said that further rate cuts would be needed to boost inflation.
"Our current projections and assumptions indicate that further policy easing will be required to ensure that future inflation settles near the middle of the target range," RBNZ Governor Graeme Wheeler said.
Elsewhere, USD/CAD dropped 0.49% to trade at 1.3036, the lowest since September 13.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.29% at a one-week low of 95.18.