Dollar dives against euro

NEW YORK: The dollar sank against the euro after worse-than-expected data showed the US economy nearly stalled in the first quarter, clouding expectations of a Federal Reserve interest rate hike.
The early morning report from the Commerce Department sent the dollar tumbling against the 19-nation currency, at one point hitting a two-month low.
But the dollar pared its losses after the Federal Reserve announced, after a two-day policy meeting, that the slowdown in the world´s largest economy was “in part” due to transitory factors, predicting that growth would return to a “moderate pace”.
The euro traded at $1.1128 around 2100 GMT, up from $1.0981 late Tuesday.
As expected, the Federal Open Market Committee left its key federal funds rate near zero, but after previously hinting the rate hike could come in mid-2015, the FOMC statement left open the timing of an increase as it waits for more signs of economic progress. The central bank had previously signalled a possible hike in June, but analysts now expect it in September at the earliest following a spate of soft readings. The latest came Tuesday as the Conference Board reported its index of consumer confidence tumbled in March, instead of rising as expected.