The US dollar lost ground against the majors in New York as traders pushed the greenback lower after the Federal Reserve hiked interest rates by 25 basis points.
FOMC raised rates by 25 basis points, bringing the benchmark to 2.50 percent. The dollar weakened after the Fed kept its statement unchanged, keeping "measured" approach to the pace of interest rates increases.
Currently US benchmark rate are 50 basis points higher that Euro Zone rate, 2.25 percent lower than UK's rate and 2.50 percent higher than Japans benchmark rate. With Fed continuing hiking the interest rates, markets expect that the yield differentials will change and greenback bulls should get a boost from a dollar positive carry.
The US dollar was quoted at 1.3031-34 against the euro, 1.8852-62 versus the British pound and 103.73-77 against the Japanese yen at 23:30 GMT.
Wall Street stocks rallied, led by gains in technology shares as markets ignored widely expected interest rate increase.
Dow Jones Industrial Average was up 0.4 percent at 10,596.79. The Standard and Poor's 500 index gained 0.3 percent to 1,193.19 and the NASDAQ Composite moved 0.3 percent higher to 2,075.06.
Internet companies were in play, as Google, the popular Internet search engine, rallied 7.3 percent to $205.96 after beating earnings estimates. Yahoo, a rival Internet company, added 2.3 percent to $35.54.
THQ, a video game company, gained 17.9 percent to $26.96 after releasing better than expected quarterly results.
Adobe Systems, a software company, closed 7.6 percent higher at $62.29 after the company raised its earnings guidance.
Nvidia, a graphics chip maker, rose 5.6 percent to $24.65 after the company announced a new product lineup.
The NYMEX crude oil futures contract for March delivery fell 43 cents to $46.69 per barrel after the EIA report showed that crude oil inventories increased from the previous week.
The COMEX gold futures contract for April delivery gained 80 cents to $423.80 per ounce as dollar retreated against the majors.
The US treasury bonds sold off after the Federal Reserve raised its benchmark rates by 25 basis points. Bond prices move inertly to the rates and as rates go up bond prices fall. The 10 Year Treasury Bond futures contract for March delivery fell 0.01 to 112.08.