Dollar set for 4th weekly drop on dovish Fed

The dollar index fell to a fourth consecutive week of decline on Friday as the U.S. Federal Reserve stuck to maintaining ultra-low interest rates for longer. 

The dollar index was set to end the week 0.2% lower, bringing its losses to 2.8% in April. The loonie rose to a more than three-year high of C$1.2273 against the dollar on Friday, on course for a 1.7% weekly gain. 

At the Fed’s policy meeting on Wednesday, Chair Jerome Powell acknowledged the U.S. economy’s growth but said there were no enough signs of substantial progress toward recovery to warrant a policy change.

Higher commodity prices boosted the Aussie, which rose 0.2% to $0.77795, recovering back to the six-week high of $0.78180 hit on Thursday. 

The euro was largely flat at $1.2122, near the two-month high of $1.2150 hit the last session. The common currency is up 0.2% for the week and 3.3% for the month. 

The yen stood at 108.86 against the dollar, near the two-week trough of 109.22 hit on Thursday.