Fed holds rates steady, U.S. dollar weakens

The dollar index, which measures the greenback against six major currencies, fell 0.59 percent to 94.366 in late trading.

In a statement on Wednesday, Fed officials gave mixed assessments of the U.S. economy, saying that the pace of job gains has slowed while growth in economic activity appeared to have picked up since April.

The central bank raised its target range for the federal funds rate to 0.25 percent to 0.50 percent in December last year, the first rate hike in nearly a decade.

But financial market turmoil and a slowdown in the global economy since the start of this year have raised concerns about the strength of the U.S. economy, prompting Fed policymakers to hold off on any further rate increases since then.

On the economic front, the Producer Price Index (PPI) for final demand increased 0.4 percent in May, seasonally adjusted, beating market consensus, the U. S. Department of Labor reported Wednesday.

Meanwhile, U.S. industrial production decreased 0.4 percent in May after rising 0.6 percent in April, the Fed said Wednesday.

In late New York trading, the euro rose to 1.1267 dollars from 1.1212 dollars in the previous session, and the British pound increased to 1.4170 dollars from 1.4116 dollars. The Australian dollar was up to 0.7419 U.S. dollar from 0.7362 dollar.

The U.S. dollar bought 105.76 Japanese yen, lower than 106.06 yen in the previous session. The U.S. dollar fell to 0.9614 Swiss francs from 0.9630 franc, and it edged up to 1.2907 Canadian dollars from 1.2860 Canadian dollars.