Dollar deepens losses on weak data

The US dollar fell against most of its peers on Thursday, after the market absorbed the Federal Reserve's statement, following the release of weak economic data.

The US Federal Reserve has kept the interest rate between zero and 0.25% unchanged, but projected to raise it 3 times in 2023 and 3 more times in 2024, to reach 1.8% by the end of 2024.

The Fed stated that depending on the continuous rise in inflation and improved labor market conditions, the FOMC sees that it would be appropriate to start reducing asset purchases.

The Fed also estimated the US GDP to grow by 3.8% in 2022, 2.5% in 2023, and 2% in 2024.

The US Department of Labor revealed that the number of initial unemployment claims was at 351K last week, lower than forecasts of 322K.

The dollar index fell against a basket of currencies by 0.5% to 93.03 points as of 18:00 GMT, after it hit a high of 93.5 points and a low of 92.9 points.