Dollar falls to 2-week low after Federal Reserve meeting

US dollar fell on Thursday to its lowest level in two weeks against a basket of global currencies, continuing its sharp losses for the second day in a row as dollar's sell-off activity rallied after the Federal Reserve meeting, which increased the likelihood of a future US interest rates cut this year to meet global and local risks.

The dollar index fell more than 0.6% to 96.58 points, the lowest since June 7, from the opening level of 97.18 points, with the highest level at 97.20 points.

The index yesterday lost 0.4%, the second loss in the last three days, to drop from a two-week high of 97.77 points, reflecting the decline of the US currency against most major and minor currencies.

US Dollar's sell-off activity are currently accelerating after the Federal Reserve meeting, which has increased the likelihood of a one or two US interest rate cuts this year.

The US central bank kept interest rates unchanged on Wednesday, at 2.50% for the fourth straight meeting, in line with most of the financial market expectations.

The Fed said interest rate cuts were on the rise, boosting the possibility of monetary policy easing at the next month's meeting, to help the bank combat growing global and domestic risks.

The global threat is the US trade wars with several countries, especially China, and domestic risks which are based on the rising fears about weak inflation levels in the country.

The Federal Reserve dropped the word "patient" when changing interest rates from the monetary policy statement, and stressed that it will take what is necessary to maintain economic growth in the country, and showed that about a half of its members are ready to reduce borrowing costs in the next few months.

Federal Reserve Chairman Jerome Powell said some of central bank's officials believe the issue of easing monetary policy has been more appropriate in recent times.

Powell confirmed his intention to spend his full four-year term in response to reports that US President Donald Trump was trying to oust him from the presidency of the Federal Reserve.

The Federal Reserve has lowered its forecast for the pace of inflation in the United States to 1.5% this year from 1.8% on average in March, and also forecasted that inflation would not reach the target of 2% next year.

After the end of this important meeting, the main question in the financial markets is no longer whether the Fed will cut interest rates next July or not, but whether the cut will be 25 or 50 basis points?