Dollar slightly pares losses after Fed meeting statement

NEW YORK (Reuters) – The dollar slightly pared losses on Wednesday after the Federal Reserve held interest rates steady but opened the door to reducing borrowing costs as soon as its next meeting in September, as was widely expected.

“There has been some further progress toward the Committee’s 2% objective” in inflation, the central bank’s Federal Open Market Committee said in a statement at the end of a two-day policy meeting.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, was last down 0.1% on the day at 104.34, with the euro falling 0.08% to $1.0806.

The greenback was also down 1.02% at 151.2 Japanese yen.

(Reporting By Karen Brettell)