LONDON: The dollar fell Wednesday against the euro after the US Federal Reserve said it would keep record-low interest rates for some time, and amid lingering hopes of help for crisis-hit Greece.
The greenback meanwhile rose against the yen after the Japanese central bank held interest rates near zero and decided on further monetary easing to stimulate economic recovery.
In late morning London trade, the European single currency edged up to 1.3782 dollars, from 1.3774 late in New York on Tuesday. Against the Japanese currency, the dollar edged up to 90.53 yen from 90.28 yen on Tuesday.
"The dollar fell back last night after the Federal Reserve signalled no change on interest policy for an extended period," said CMC Markets analyst Michael Hewson.
"The tone of the statement was more positive than last month about the economic outlook."
Investors cheered the Fed's pledge to keep interest rates "exceptionally low" and "for an extended period" after a crucial monetary policy meeting.
The Fed held its fed funds rate at the zero to 0.25 percent range, and offered a slight upgrade to its view of the economy.
The euro, meanwhile, garnered some support after European Union finance ministers on Tuesday backed a eurozone plan to make emergency loans available to Greece, if needed, to shield the country from bankruptcy.
"The euro has continued to be supported by hopes of some form of help for Greece," added Hewson.
As the eurozone tackled a government debt crisis that has exposed deep divisions, European Union partners made it clear that the 27-nation bloc sees any eventual aid as a necessary evil that must be prepared only if the health of the euro is endangered.
Elsewhere on Wednesday, the yen took a hit after the Bank of Japan decided to double the amount of cash it would make available to banks after a two-day meeting Wednesday.
The BoJ also froze its key interest rate at a record low 0.1 percent to support a fragile economic recovery.
In London on Wednesday, the euro was changing hands at 1.3782 dollars against 1.3772 dollars on Tuesday, at 124.76 yen (124.33), 0.8974 pounds (0.9027) and 1.4511 Swiss francs (1.4519).
The dollar stood at 90.53 yen (90.24) and 1.0529 Swiss francs (1.0538).
The pound was at 1.5356 dollars (1.5255).
On the London Bullion Market, the price of gold rose to 1,131.65 dollars an ounce from 1,124.75 dollars an ounce on Tuesday.
