The greenback rebounded in late U.S. session on Wednesday after the FOMC announcement that rates are likely to stay low for sometime (target rates unchanged at 0-0.25% as widely expected) and stated that it would extend its mortgage debt purchasing program to the first quarter of 2010 as economic activity has picked up following a severe downturn. Traders interpreted the annoucement as the Fed is not even close to getting out yet and diminished risk appetite. DOW index fell 81 points to end at 9748.

The single currency retreated in European morning on long liquidation and fell to 1.4731 on the back of a comment fm a French Government source who said that France is concerned about the current level of the euro. Although price rose briefly to another fresh 2009 high of 1.4845 after the Fed's comments that economic activity has picked up following a severe downturn, euro retreated strongly again to as low as 1.4685 from there on dollar's broad-based rebound and the decline in equities.

Cable rose from 1.6329 in European morning after the release of BoE meeting minutes for September which showed that MPC members voted 9-0 to keep interest rates at 0.5% and the size of the asset purchasing program at 175 billion pounds. Price edged higher to 1.6470 right after the Fed's rate decision came out but then retreated strongly in late U.S. session to near the aforesaid European low on dollar's firmness.

Economic data to be released on Thursday include:

Japan trade balance, all industry index, German Ifo and U.S. jobless claims, existing home sales.