Forex - U.S. Dollar Falls From Two-Year High - Investing.com

Investing.com - The U.S. dollar fell back slightly from a two-year high after the excitement of the Federal Reserve's wait-and-see approach wore off.

The Fed cut rates by 25 basis points on Wednesday, the first cut in a decade, but indicated it would not be aggressive on its approach to monetary policy.

Fed Chairman Jerome Powell called the cut a small correction and “not the beginning of a long series of cuts.”

“You would do that if you saw real economic weakness ... That’s not what we’re seeing,” he said during his press conference.

The , which measures the greenback’s strength against a basket of six major currencies, was up 0.1% to 98.382 by 11:03 AM ET (15:03 GMT) after reaching an earlier high of 98.665.

The dollar was higher against the Japanese yen, with falling 0.5% to 108.19.

Sterling was still in the red, with down 0.1% to 1.2143, after the Bank of England kept rates steady. The bank voted unanimously to keep the rate at 0.75%, as expected, but downgraded its projections for growth for the next two years.

The BoE did not warn against a no-deal scenario, but did say that "companies expect output, employment and investment to be much lower in a no-deal Brexit."

The pound lost more than 4% in July on fears of a hard Brexit, as newly elected Boris Johnson has insisted that the U.K. will leave the European Union on October 31 with or without a deal.

Elsewhere, was down 0.1% to 1.1058, and rose 0.2% to 1.3209, while was up 0.3% to 19.1852.

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