Yup, still sliding.
The dollar index is wallowing at new 14-month lows, having sunk as far as 93.152 overnight. (It’s now at 93.37.)
The euro is still sailing above $1.17, though it’s off its highs, and sterling is at $1.3140 – the highest since September last year.
The drop in the buck comes after the Fed last night kept most of its language unchanged, but also failed to inject any new note of hawkishness.
As Bank of America Merrill Lynch’s credit analysts put it:
Hawk days are over. Based on the FOMC statement it appears that, as expected, the Fed’s plan is to announce the timing for balance sheet normalization soon – perhaps as early as September – while the rate hiking cycle is on hold until better inflation data confirms the Fed’s view that they are on target to reach their mandate. Judged by the rates and dollar reactions that was marginally less hawkish than the market expected, probably as the Fed chose not to dismiss the recent weak inflation prints as being temporary.