The dollar was weak against the yen and euro as still reeling from a less-bullish outlook on the U.S. economy by the Federal Reserve the previous session. While on the other hand euro’s rise, however, was partly limited by steep losses in the US stock market. John McCarthy, director of foreign exchange trading at ING Capital Markets in New York said: "The dollar has been well-offered for most of the session and that’s mostly on the back of the Fed’s concerns about U.S. growth."
European investors chose to focus on the Fed’s scaling back of its assessment of the pace of recovery, leading them buy the yen and sell the dollar. Pound rose high versus the euro. British assets were still being bolstered by Tuesday’s tough budget, which investors perceive as necessary to tackle a huge deficit as fiscal worries plague the euro zone.
The euro rose 0.1 percent to $1.2325 against the dollar. The euro was down 0.3 percent versus the yen at 110.32 yen , while the dollar fell 0.4 percent to 89.47 yen. The Pound last traded at $1.4922, down 0.3 percent on the day.
Mmm? Interesting 