Dollar drops on Fed decision

The U.S. dollar fell against major currencies in late New York trading on Wednesday as the Federal Reserve decided to keep the monetary policy unchanged. The Federal Reserve announced Wednesday to hold steady the monetary policy with no additional measures after a two-day policy meeting. The decision was in line with market expectations, and the Fed's move also helped ease concerns about the dollar's weakening if new easing policy was launched. The dollar pared its losses against major currencies in late trading session on Wednesday after the Fed's statement. However, Ben Bernanke, the Fed chairman, expressed his concerns about economic growth, saying the pace of growth is likely to be " frustratingly slow." His words added expectations for further monetary easing policies which could be negative for the dollar. The dollar lost 0.26 percent to 77.06 on Wednesday. With no latest news from Europe, the euro rebounded 0.38 percent against the dollar on Wednesday after a drop in previous session. Meanwhile, Automatic Data Processing reported that 110,000 jobs were added to the private sector in October, which indicated improved employment situation in the private sector, but this positive report did not help much in supporting the dollar. In late Wednesday trading, the dollar bought 78.06 Japanese yen, compared with 78.33 from late Tuesday. The euro rose to 1.3765 dollars from 1.3715. The British pound also rose to 1.5967 dollars from 1.5962. The dollar fell from 0.8863 Swiss francs to 0.8832, and dropped to 1. 0143 Canadian dollars from 1.0168.