Dollar Slumps After Fed News
NEW YORK -- The dollar weakened on the euro after the Federal Reserve's policy statement diminished the greenback's appeal to yield-seeking investors.</br></br>The Fed kept interest rates unchanged at near zero and said it will see its $600 billion bond-purchasing plan through to completion in June.</br></br>That stance, while not unexpected, did telegraph to market participants that U.S. interest rates wouldn't be increasing any time soon, weighing on the dollar.</br></br>The euro broached $1.3700 following the statement -- and came within striking distance of two-month highs reached overnight -- from $1.3663 shortly before the announcement. Dollar now has weakened in seven sessions in a row, and it closed at the low for the year.</br></br>"[This statement] definitely keeps a lid on the dollar," said Phil Streible, senior market strategist at Lind-Waldock in Chicago. "I thought there was a chance [the Fed] could at least mention the chance that we might eventually tighten policy, but we didn't see anything remotely like that from them."