EU FX I Currencies: Dollar drops to 2-week low vs yen on change in Fed outlook
Jim Cramer 3 minutes francisLM | iStock | Getty Images The dollar fell against most major currencies on Thursday, dropping to a two-week low versus the yen, pressured by the Federal Reserve’s cautious U.S. economic outlook suggesting the central bank is near the end of its tightening cycle. The Fed’s dovish stance in Wednesday’s policy statement took the market by surprise even though it has preached patience and balance sheet flexibility for some time. Analysts said the statement felt like the Fed did a turnaround from its previous generally upbeat stance. Over the last two months, the dollar index , which tracks the currency versus six major rivals, has fallen around 2.0 percent, on track for its worst two-month performance in a year. The Fed said it would be patient in raising interest rates further this year as it pointed to growing uncertainty about the U.S. economic outlook. But it did not rule out using a range of tools, including altering the size and