The king of the US dollar continued to extend lower in the European session after a monetary policy announcement by the Federal Reserve (Fed) showed the central bank was in no hurry to reduce bond purchases.
While the Fed says there is progress toward achieving the central bank’s targets, policymakers will further assess such progress at the next meeting.
Chairman Jerome Powell also said policymakers had discussed reductions during the meeting, but no decision was made following the discussions.
The greenback plunged to a three -week low against major rivals, with the dollar index trading at 92.05.
The pound capitalized on the weakness of the USD to rise to a four-week high, despite an increase in coronavirus cases in the UK after seven consecutive days of declines.
Meanwhile, the euro also strengthened by trading around a two -week high against the US dollar.
On the other hand, the Aussie and New Zealand dollars also rose higher following the depreciation of the US dollar, as well as supported by better sentiment in Asian stock markets after China eased pressure on technology companies.
The next market focus will shift to the publication of the first US Gross Domestic Product (GDP) estimate data tonight which is expected to show an increase in the second quarter of this year.
