Dollar Falls to 1-Month Low as Fed Extends Target to Late 2014

The dollar reached the weakest level in a month against the euro after the Federal Reserve extended its pledge to hold its target for the federal funds rate low until late 2014 amid a “highly accommodative” monetary policy.

The central bank had previously pledged to keep its rate target in place until mid-2013. The U.S. currency briefly pared losses after nine of 17 Fed officials expect borrowing costs will remain below 1 percent at the end of 2014, the Fed disclosed, with six officials expecting zero rates to remain into 2015. The euro fell versus most its major counterparts earlier after the European Central Bank was said to oppose restructuring its Greek bonds. New Zealand’s dollar remained higher versus its U.S. counterpart as the nation’s central bank held the target lending rate at 2.5 percent.