The U.S. dollar slid to a fresh 14-month low against the euro on Wednesday after the U.S. Federal Reserve kept interest rates near zero and maintained its bond-buying program to spur economic growth.
The Fed's decision to maintain its $85 billion a month bond-buying program is geared toward boosting the economy and is not likely to stop until the outlook for unemployment improves substantially.
Loose monetary policy gives investors less incentive to buy and hold U.S. dollars, thereby contributing to its weakness.
"This was broadly in line with expectations," said Michael Woolfolk, senior currency strategist at BNY Mellon in New York.
"So the mood of the market has not changed much at all. And certainly after the U.S. data this morning, particularly the GDP report, we can expect the Fed to continue with their very accommodative monetary policy, and that's negative for the dollar," he said.
The euro spiked to a fresh high of $1.3587, a gain of roughly 0.70 percent, according to Reuters data. The euro zone currency was already stronger against the greenback after the U.S. Commerce Department earlier reported an unexpected 0.1 percent contraction in U.S. fourth quarter economic activity,