Dollar plunges as Fed does not expect any rate hike in 2019 by Investing.com

Investing.com – The US dollar fell after the US Federal Reserve left its rates unchanged and announced rates could be almost neutral after downgrading its outlook for future rate hikes.

The, which measures the greenback against a basket of six major currencies weighted by trade, fell 0.66% to 95.20.

The Federal Reserve signaled the slowdown in global and domestic growth as it left its benchmark rate in the range of 2.25% to 2.5%. The central bank has said it will continue to maintain rate increases offside for the rest of the year.

"In the light of global economic and financial developments and reduced inflationary pressures, the Committee will be patient as it will determine future adjustments to the federal funds target range that may be appropriate to support these results." said the Fed in a statement.

The Central Bank announced that it would begin in May to reduce the amount of products it allows to withdraw each month and terminate the program in September.

The Fed left up to $ 50 billion worth of securities per month maturing, which peaked at about $ 4,500 billion in January 2015. It has now been reduced to about $ 4 trillion.

The dollar was also supported by a fall in the pound sterling amid fears that the UK could collapse without an agreement on March 29, after the EU reportedly announced that would only accept a short deadline for the Brexit if the UK legislator backed Prime Minister Theresa May's withdrawal agreement next week.

slipped 0.75% to $ 1.3168 and increased 0.09% to $ 1.1355.

rose 0.09% to Y111.47 as falling US government bond yields as a result of the Fed's statement put pressure on the greenback.

up 0.03% to C $ 1.3325, but the pair's rise was limited by the strength of the loonie due to higher oil prices in the United States, while stocks indicated that stocks of crude had fallen much more than expected.