The US Federal Reserve has kept its benchmark interest rate in the range of 0.25-0.50 % per annum and reported that it still expects two increases in the rate this year.
The decision of the US central bank coincided with analysts' expectations.
Most of the 64 economists, who participated in the monthly survey of The Wall Street Journal, were sure about a rate increase this summer, but they didn’t expect it in June, based on the latest report on US employment.
Their main concern was the weak report on the US labor market in May, as well as the coming UK referendum on leaving the European Union.
At the same time more than half of economists expect the rate rise at the next meeting, which will take place July 26-27 - 51% compared to 21% in the May survey.
The regulator has reduced the forecast of GDP growth in 2016-2017 and expects that the economy will expand by 2 %. It also noted slowing improvements in the labor market, despite the increase in economic activity, but expects that the situation will improve. The Fed expects that inflation will remain low in the short term, but will accelerate with the disappearance of the effect of lower energy prices.
The dollar fell against other major currencies after the Federal Reserve and the Bank of Japan left its monetary policy unchanged, while concerns about a potential exit of Britain from the European Union put pressure on the market sentiment.
USD/JPY fell 1.60% to 104.30, the lowest level since August 2014, after the Bank of Japan officials voted for the further expansion of the monetary base at an annual rate of about ¥ 80 billion.
Following their meeting on Thursday, the Bank of Japan also said that the British referendum on membership in the EU is a key geopolitical threat to the Japanese economy, along with the "debt problem in Europe."
The decision was made after on Wednesday the Fed also indicated the referendum as one of the factors that influenced its decision to keep the interest rate unchanged.
The EUR/USD was stable at 1.1255.