The US dollar slumped on Wednesday as the Federal Reserve implied it might wait until late this year to increase interest rates.

Policymakers said it would hike rates when the economy is strong enough to handle it. Also, they lowered the projections from 2.3% to 2.7% range forecast in March to 1.8% to 2.0% this year.

The greenback closed at $1.1199 per euro and $1.5640 per British pound. Against the Japanese yen, the dollar ended at ¥124.435.

It has to be gentle… It is reiterating everything Fed Chair “Janet Yellen has tried embody in the last couple of years,” said Andrew Wilkinson, Chief Market Strategist at Interactive Brokers LLC.

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