Dollar down nearly 2% as Fed drops 'patient'

In late trading, the dollar dropped 1.8 percent against the Swiss franc to 0.9873 franc, earlier hitting a one-week low. It fell to two week-troughs against the yen and was last at 120.75 yen, down 0.5 percent.

The euro, meanwhile, hit one-week highs against the dollar and was last trading at $ 1.0736, up 1.3 percent.

The U.S. dollar got blistered as well versus Australian , New Zealand and Canadian dollars, which all rose more than 1 percent.

Interest rate futures are now pricing in a 67 percent chance that the first Fed rate hike will come in October, based on CME FedWatch, which tracks rate hike expectations using its Fed funds futures contracts.

Before the release of the Fed’s post-policy-meeting statement, traders were betting the first rate hike would come in September.

“‘Patient’ may be out, but the tone and substance of the policy statement suggest that those looking for a June hike will move it out to September and the September people will move their call out as well,” said Steven Ricchiuto, chief economist at Mizuho in New York.

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