Dollar Plunges as Fed Sees Slower Pace for 2016 Rate Increases
- Gauge of greenback weakens the lowest level since October
- Central bank cites weaker global growth, financial turmoil
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The dollar plunged to the lowest in almost five months Wednesday as the Federal Reserve scaled back expectations for the path of interest-rate increases in 2016, after holding its benchmark target steady.
The U.S. currency slid against most major peers in New York as the central bank cited the potential impact from weaker global growth and financial-market turmoil on the U.S. economy. The currency declined the most in one month as policy makers maintained the federal funds target rate and scaled back forecasts for further rate increases this year following a two-day meeting.