Euro records largest 1-day move against buck since December 2008 The dollar dropped against its rivals, falling to its lowest level against the euro in eight days, after the Federal Reserve’s monetary policy statement implied that the central bank will keep its benchmark rate lower for longer. The median reading on the Fed’s quarterly “dot plot,” which measures Federal Open Market Committee members’ expectations for the Fed funds rate, fell to 0.625%, from 1.125% for December 2015, giving the market the impression that the Fed won’t raise rates until its September meeting at the earliest, said Mike O’Rourke, chief market strategist at Jones Trading. After briefly rising above $1.10, the euro EURUSD, -1.80% finished the North American session at $1.0873, recording its largest one-session move against the buck since December 2008. The shared currency had traded at $1.0598 Tuesday. In other currency action, the dollar CADUSD, -0.76% dropped to 1.2580 Canadian dollars, compared with $1.2766 late Tuesday. It USDJPY, +0.41% traded at 120.23 yen, compared with ¥121.34 Tuesday. Steve Englander, global head of G10 FX strategy at Citigroup, said that the Fed’s statement was more dovish than anyone had expected — which was likely a deliberate move to curtail the dollar’s rapid rise, and less a reflection of when the Fed actually intends to raise rates. “Had they sounded hawkish, there would be nothing to stop the dollar from rallying for the next three months, and I think that was probably a consideration,” Englander said. Englander added that the dollar’s rapid decline following the release of the Fed statement was mostly driven by traders’ attempting to preserve profits. As was widely expected, the Fed removed language pledging to be “patient” before raising interest rates, but promised to be so-called data-dependent going forward. Meaning the central bank will focus more on economic reports to determine when to raise rates. Yellen also partly attributed the decline in exports and inflation to the rapidly rising dollar. http://www.marketwatch.com/story/dollar-trapped-in-a-tight-r...