The Federal Reserve signaled that further stimulus expansion are unlikely to happen as recovery picked up over the past period, and conditions continue to improve in a satisfactory pace to the bank's official.

The Fed statement said firmer footing, and overall conditions in the labor market appear to be improving gradually, where despite inflation that have risen significantly over the past period, inflation expectations remains stable.

The dollar traded unchanged at the US dollar index, which tracks the performance of the single currency against six-majors, at 76.469, while setting a high of 76.585 and a low of 76.326.

The euro weakened against the dollar as Moody's Investors Services downgraded Portugal's credit rating by four-notches, to A3, from the so-called junk status, while setting the country's outlook to negative.

Finance Minister in the European Union failed earlier this week to decide how they would fund up the EFSF to €440.0 billion, from the current €250.0 billion, which may cripple the ability to tackle the ballooning debt crisis in the continent.

The Euro/Dollar pair dropped to 1.3963, from the opening levels of 1.3997, while setting a low of 1.3925. Technical analysis indicates that the pair may weaken further as it failed to sustain gains above 1.4000.

The pair's trading for today will be bound by the support at 1.3895 and the resistance at 1.4040.

The pound rose as labor jobless claim fell by 10.2 thousand last month in UK, but the move was limited as unemployment rose to 8.0% from 7.9 percent. The cable rose to 1.6098, while set a high of 1.6130 and a low of 1.6047.

The pair's trading is bounded by the support at 1.5965 and the resistance at 1.6215.

The yen fell as radiation leaks concern continue on mounting, but the currency trimmed its losses and rebounded against the dollar as Tokyo Electric Power Co said a contaminated vessel may have been breached at a crippled nuclear plant.

The yen was also affected by BoJ action of pumping nearly five trillion yen into the financial system in order to support the economy.

The dollar is currently losing grounds in favor of the yen where it's trading at 80.63, compared with the opening levels of 80.76 while setting a high of 81.17 and a low of 80.43.

The pair's trading will be bounded by the support at 80.00 and the resistance at 81.00.