The dollar held onto gains against the euro on Wednesday as the Federal Reserve, as expected, made no changes to its bond-purchase programme or interest rate forecast.

The Fed kept to its stimulus plan, saying it will keep its bond buying programme going until the job market improves while keeping interest rates ultra low. The Fed issued an uninspiring review of the world's largest economy, saying slight progress had been made but the unemployment rate remained high.

The ICE dollar index, which measures the US currency against a basket of six others, advanced to 79.931 from 79.921 the previous session.

The euro fell to an intra-day low of $1.2918 in early trading but later recovered to trade around $1.2972 compared to $1.2984 on Tuesday.

The single currency came under selling pressure after a disappointing purchasing managers' index for the Eurozone. Germany's Ifo business-climate index exacerbated fears that the downturn is getting worse.

Sterling struck a one-week high against the euro and advanced against the dollar as investors look ahead to UK growth numbers out on Thursday.

Against the Japanese yen the greenback was little changed at ¥79.79 from ¥79.84 on Tuesday. The euro fell 0.1% against the yen at ¥103.52.

Asian markets were mostly boosted on Wednesday after HSBC's preliminary report of China manufacturing Purchasing Managers' index improved in October.



CJ

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