European session:

The dollar fell to a 16-month low versus the euro on speculation the Federal Reserve will signal it will keep interest rates low at today’s meeting to support the U.S. economy after its bond-buying program expires in June.
The Dollar Index dropped for a seventh day, the longest streak since December. The yen weakened against all of its major counterparts after Standard & Poor’s cut Japan’s sovereign- rating outlook to “negative.” The Australian dollar rose to a record after a report showed consumer prices climbed the most since 2006. The pound climbed against the dollar after a report showed Britain’s economy rebounded in the first quarter.
“There is not an awful lot of scope for the Federal Reserve to do anything else but to keep its policy loose for a while,” said Jane Foley, a senior currency strategist at Rabobank International in London. “I don’t think the Fed will feel the need to signal a shift in policy. In an environment where interest-rate differentials are key drivers of the market, the dollar is not going to do well against higher-yielding currencies, including the euro.”