Fed Split Weakens Dollar, Lifts Euro – Commerzbank

The Dollar Index dropped and EUR/USD rose following the Federal Reserve’s decision to leave interest rates unchanged. The central bank’s announcement exposed a significant split among policymakers, which weighed on the greenback.

Commerzbank’s FX research team, including strategists such as Charlie Lay, highlighted the reaction. They noted that the internal divide undermined confidence in a unified tightening path, benefiting the single currency.

The move underscores how closely currency markets are monitoring the Fed’s consensus—any sign of discord tends to soften the dollar, giving room for the euro to advance.