Dollar Falls as Fed Holds Rates Steady Amid Inflation Concerns

The US dollar fell across the board on July 29 after the Federal Reserve left interest rates steady, sparking concerns about how central bank chief Kevin Warsh will tackle inflation.

The widely expected decision to keep the benchmark rate in the 3.50-3.75% range drew dissent from three members of the Fed's policy-setting committee who preferred a quarter-percentage-point hike.

'Thus far, very dollar-negative decision,' said Juan Perez, director of trading at Monex USA. 'We believe that for the remainder of the year, the Fed will hesitate and not hike rates.'

The dollar index fell 0.3% to 101.07, while the euro rose 0.4% to $1.14315.