The dollar weakened against the yen and Swiss franc on Wednesday as traders reckoned emergency action taken to stall the fall of the Turkish currency would not be enough to calm jitters over global emerging markets.
As expected, the Federal Reserve pared its massive stimulus by an additional $10 billion, leaving the U.S. currency little changed. In December, U.S. central bank policy-makers surprised some investors by paring its third round of quantitative easing by $10 billion in January to $75 billion.
The greenback initially rose against the yen and Swiss francs— traditional safe haven currencies—after a surprisingly aggressive interest rate hike by the Turkish central bank in a bid to shore up its currency, which had shed over 3 percent since Friday.