The greenback fell on Tuesday after the Fed announced an unchanged rate decision with a dovish rate outlook. The euro rose to session high at 1.3776 against the dollar after the FOMC announcement, however, the rally did not sustain after the market quickly digested this statement.

The Fed maintained the federal funds rate at 0 to a quarter percent as widely expected, but still kept the line that economic conditions warrant low levels of interest rates for an extended period. It confirmed the QE measures taken to promote economic recovery are nearing completion. The remaining agency-backed securities and agency debt purchases will be finished by the end of this month. The special liquidity facilities created during the financial crisis have been closed.

The euro was boosted after affirmed Greece’s BBB+ long-term rating and A-2 short-term sovereign credit rating. However its rating outlook remains negative, warning the market of possible further deterioration in Greece economy.

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