Fed decision to keep rates close to zero sees dollar fall against euro

The dollar fell after the Federal Reserve last night held off on raising interest rates. The US central bank declined to boost its short-term interest-rate target at a policy-setting meeting, opting to delay an increase amid stubbornly low inflation, an uncertain outlook for global growth and recent financial market turmoil.

“It’s a little bit of a doveish development here and the dollar’s obviously selling off,” said Omer Esiner, chief market analyst at currency brokerage Commonwealth Foreign Exchange in Washington.

“The actual outcome was not a major surprise but I think the statement was somewhat more doveish that I was expecting.”