FOREX-Dollar pares losses after Fed meeting statement

The dollar index pared losses Wednesday after the Federal Reserve left interest rates unchanged and dropped a longstanding reference to possible further hikes in borrowing costs. It said the policy-setting Federal Open Market Committee "does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%," the Fed's inflation target. The dollar index was last flat on the day at 103.39.

The dollar index pared losses Wednesday after the Federal Reserve left interest rates unchanged and dropped a longstanding reference to possible further hikes in borrowing costs. The U.S. central bank's latest policy statement, however, gave no hint that a rate cut was imminent. It said the policy-setting Federal Open Market Committee "does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%," the Fed's inflation target.

The dollar index was last flat on the day at 103.39. The euro was last down 0.16% on the day at $1.08275. The greenback pared losses against the yen and was last down 0.66% on the day at 146.72 yen. (Reporting By Karen Brettell; Editing by Chizu Nomiyama)