1st LD Writethru: U.S. dollar declines on Fed decision

The U.S. dollar decreased against other major currencies on Wednesday as the Federal Reserve kept interest rates unchanged.

In a statement released after the Fed's two-day monetary policy meeting on Wednesday, Fed officials said they decided to maintain the target range for the federal funds rate at 0.25 to 0.5 percent, noting that "global economic and financial developments continue to pose risks" to the U.S. economy.

"In determining the timing and size of future adjustments to the target range for the federal funds rate," the central bank "will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation," according to the statement.

The dollar index, which measures the greenback against six major peers, was down 0.83 percent at 95.829 in late trading.

On the economic front, the Consumer Price Index (CPI) for all urban consumers declined 0.2 percent in February on a seasonally adjusted basis, on par with market estimates, reported the U.S. Labor Department Wednesday.

Meanwhile, privately-owned housing starts in February were at a seasonally adjusted annual rate of 1.178 million units, 5.2 percent above the revised January estimate, said the U.S. Commerce Department Wednesday.

In late New York trading, the euro rose to 1.1183 dollars from 1.1105 dollars of the previous session, and the British pound climbed to 1.4230 dollars from 1.4143 dollars. The Australian dollar went up to 0.7526 dollars from 0.7447 dollars.

The dollar bought 112.91 Japanese yen, lower than 113.13 yen of the previous session. The dollar decreased to 0.9873 Swiss francs from 0.9880 Swiss francs, and it inched up to 1.3362 Canadian dollars from 1.3270 Canadian dollars. Endit