Federal Reserve Signals Potential September Rate Cut

The dollar slightly pared losses after the Federal Reserve announced it held interest rates steady but opened the possibility of reducing borrowing costs in September. The dollar index, which measures the greenback against other currencies, showed minor fluctuations following the announcement.

The dollar slightly pared losses on Wednesday after the Federal Reserve announced it would hold interest rates steady while signaling a potential rate cut in September.

The central bank's statement noted progress toward its 2% inflation target, prompting market speculation.

The dollar index, measuring the greenback against other currencies, showed minor fluctuations in response.

(With inputs from agencies.)