The U.S. dollar, which pared some gains after showing some strength early on in the session on Wednesday, climbed higher as the Federal Reserve announced its policy, but swiftly retreated and slipped below the flat line and lost ground against some of its peers.

The Federal Open Market Committee left the target range for its federal funds rate unchanged at 0 to 0.25 percent as expected, and said it will continue with its $120 billion-a-month bond-buying program.

The bank, which said the economy is strengthening despite concerns over the spread of the coronavirus, added that risks to the economic outlook remain.

Noting that there has been progress towards the central bank’s goals on employment and inflation, the bank’s statement says changes to policy with regard to monthly bond purchases could be on the way.

The Fed said the open market committee will continue to assess progress in coming meetings.

In the press conference that followed the monetary policy meeting, Fed Chair Jerome Powell said there was “more ground to make up” in the labor market to meet substantial further progress threshold to taper bond purchases.

The dollar index rose to a high of 92.75, but drifted down to 92.24 later on in the session, losing about 0.19% from Tuesday’s closing level.

Against the Euro, the dollar weakened to $1.1845, giving up nearly 0.25%.

The Pound Sterling firmed to fetch $1.3906 a unit, compared to $1.3876 Tuesday evening.

Against the Japanese currency, the dollar firmed to 109.92 yen, gaining from 109.79 yen.

Against the Aussie, the dollar weakened to 0.7374 from 0.7361.

The Swiss franc was trading at 0.9100 a dollar, firming up from 0.9147. The Loonie gained against the dollar, advancing to 1.2523, as oil prices surged higher and Canadian inflation eased.


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