By Gina Lee

Investing.com – The dollar was up on Thursday morning in Asia, losing ground against the euro and sterling, as the began asset tapering but kept interest rates steady.

By 93.998 AM ET (XAM GMT), the that monitors the greenback against other currencies increased 0.15% to $X

It edged up 0.2% to 114.20.

While the pair edged up 0.12% at 0.7454, it dropped 0.06% at 0.7154.

Both the pair fell by 0.19% at 6.3941, and the pair dropped by 0.18% at 1.3659.

On Wednesday, the Fed announced its decision. Jerome Powell, Fed chairman, said that it would remain “patient” with the bank regarding the timing of interest rate increases.

Following Wednesday’s 0.5% gain, the Pound recovered from Tuesday’s $1.3603 low two weeks ago. On Wednesday, the Euro rose to $1.161, a rally that also followed the decision to gain 0.2% on Tuesday.

Now, the Fed is focusing on the length of deferring interest rate increases. There are concerns about high inflation lasting longer than initially predicted.

“Powell said that although this Fed meeting focused more on quantitative easing than rates of interest, this meeting will mark the end of that argument. From here on, future Fed meetings are going to return the focus back to the Fed’s interest rate strategy and tactics,” Janus Henderson Investors head of multi-asset Paul O’Connor told Reuters.

It will deliver its final policy decision to the public later in the afternoon, which is the latest in a long line of central bank policy announcements.

BOE might be the initial central bank to increase interest rates after the COVID-19 pandemic. Investors are less unanimous about the BOE’s decision.

After the policy announcement, which kept interest rates stable, the Australian Dollar recovered some of Tuesday’s losses in Asia Pacific.