Rebounding from steep losses in the previous session on a more cautious than expected Federal Reserve statement on interest rates, the dollar rose broadly on Thursday as investors remained bullish on the greenback.
The dollar suffered its biggest one-day fall against the euro and sterling in six years on Wednesday. Against the Swiss franc, it posted its worst daily performance since Jan. 15, when the Swiss National Bank removed a peg on the Swiss franc against the euro. Against the yen, the dollar had its weakest day since December.
In a Fed statement issued after its policy meeting on Wednesday, the U.S. central bank removed reference to being "patient" on rate rises but downgraded its views on the economy and inflation and lowered its interest rate trajectory.
Richard Franulovich, senior currency strategist at Westpac in New York, said the Fed's dovish statement was an excuse to sell lopsided positions on the dollar. But he added that the greenback is still a good bet in the medium term.