The dollar fell against most major currencies on Wednesday after the U.S. Federal Reserve said it would keep interest rates low for an extended period.
The Fed decided to keep its key rate at zero to 0.25 percent at its monetary policy meeting on Wednesday, in line with expectations. The central bank said it "continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period".
Information received since the Federal Open Market Committee met in June suggests that economic activity is leveling out, said the Fed in a statement released after the meeting.
The Fed said the U.S. economic activity is likely to remain weak for a time and committed to employ all available tools to promote economic recovery and to preserve price stability. It also decided to gradually slow the pace of buying Treasury securities to "promote a smooth transition in markets."
The euro bought 1.4214 dollars in late New York trading compared with 1.4148 dollars it bought late Tuesday. The pound rose to 1.6511 dollars from 1.6476 dollars.
The dollar fell to 1.0879 Canadian dollars from 1.1015 Canadian dollars, and fell to 1.0772 Swiss francs from 1.0819 Swiss francs. It rose slightly to 96.23 Japanese yen from 96.02 Japanese yen.