Allied to a reduction in the number of rate rises it forecasts in 2017 and 2018, that was enough to knock the greenback to a nearly 4-week low of 100.10 yen in Asian trading.
But there were also already three votes for a rise in rates on the Fed's policymaking committee and the start of the European day brought the dollar back into positive territory, up 0.45 percent from Wednesday's close in New York at 100.74 yen.
"The announcement constitutes a 'hawkish hold'," said Kit Juckes, a strategist with Societe Generale in London.
"There's an opportunity, taking the move down in treasury yields post-FOMC, to go long dollars here, at 100.30, with a tight stop (99.00) on the grounds that I just don't think we can push (U.S. government) TIIPS yields ... much lower."
The euro gained 0.18 percent to $1.1203, its highest since last Friday and taking it firmly back into the middle of a $1.09-$1.15 range it has held since March.
A stronger yen has been the most consistent trade of the past year among major currencies, backed since January by the growing conviction that the Bank of Japan is running out of ammunition to weaken the currency and get inflation rising.