Market participants remain concerned about a slowdown in the US economy as the trade war between the United States and China continues, however, which could force the Fed's hand. "The new, slightly shorter, statement tries to keep their options open and puts them back into a data-dependent mode, but circumstances could mean that they have less optionality than they think," said Tim Foster, portfolio manager at Fidelity International in London.

The dollar index dropped as low as 97.22, the lowest since Oct. 21, before retracing to 97.38, down 0.27% on the day. It rose as high as 98.00 on Wednesday following the Fed decision, its highest since Oct. 17. Speculators have been cutting their long dollar bets as the US currency holds near historically high levels. Any improvement in global data is considered likely to weigh on the dollar as investors bet on improving growth in Europe and other regions.

Copyright Reuters, 2019