USD MAY FALL FURTHER ON CONFUSING FED

The dollar could sell off a lot more if the market begins to lose respect for the Federal Reserve following the release of central bank's less hawkish-than-expected policy statement, according to Andrew Busch, global market strategist at BMO Harris Nesbitt in Chicago. The Fed's policy statement is "a continuation of the inability of the Bernanke Fed to communicate what they want," Busch said. "It further confuses the market...At the beginning of his term, we thought data dependent meant growth, then they clarified that it meant inflation, now they have changed their statement to include growth and inflation." At 2:46 p.m. EDT, the euro was at $1.2645 from $1.2527 before the statement and $1.2552 late Wednesday, according to EBS. The dollar was at Y115.30 from Y116.19 before the statement and Y116.47 late Wednesday, while the euro was at Y145.77 from prestatement Y146.56 and from Y146.17 Wed.