Dollar extends losses on uncertainty about Fed policy

US dollar fell against a basket of major currencies today, to erase its earlier gains, amid uncertainty about the US Federal Reserve monetary policy path.

The US Federal Reserve cut interest rates yesterday by 25 basis points to between 2.00% and 1.75%, which is the second rate cut since 2008.

The Fed statement showed that the members were divided on further rate cuts.

Fed Chairman Jerome Powell stated that any decisions to cut or raise interest rates will be based on the economic situation and future decisions would depend on data released.

The US Department of Labor revealed today its reading for the unemployment claims, which increased by 2,000 to 208,000 during last week.

As of 18:20 GMT, the dollar index rose by 0.3% to 98.2 points, with an intraday high of 98.6 and a low of 98.2.