The greenback touched the lowest level in four months on Fed’s stance
The greenback plunged on Thursday touching new lowest level in four months post Fed signalled the halt of interest rate hikes and lower borrowing costs are expected in the new year.
ECB stated that policy rates would be kept at levels that are adequately restrictive for as long as necessary, which helped the euro hold gains on a busy day for policy announcements in Europe. The Bank of England's decision to hold interest rates in a "finely balanced" manner helped the pound gain ground.
The dollar index that gauges the greenback versus its major pairs dipped 102.27, marking its weakest level since the 10th of August.
As anticipated, the European Central Bank maintained record-high interest rates and gave no indications about any impending policy easing, even though markets have already factored in rate decreases starting in early 2019.
EUR/USD advanced by 0.4% at $1.0922 ahead of ECB President Christine Lagarde's press conference.
The yen remained solid amid the plunge of the US dollar, hitting a peak at 140.95 dollar not seen since the end of July.
GBP/USD added 0.8% to $1.2725, a two-week high, subsequent to the Bank of England's 6-3 vote to maintain interest rates at 5.25%.
