The dollar tumbled the most in six years after the Federal Reserve slashed projections for U.S. interest rates, tempering the removal of a promise to remain “patient” on raising borrowing costs.

The greenback weakened versus most major peers as central bank officials almost halved their median estimate for the target rate this year. The dollar has been on a tear for the last six months, with traders boosting bets for further appreciation to a record high, as the Fed moves closer to tightening for the first time in almost a decade.

The Bloomberg Dollar Spot Index, a gauge of the currency’s performance against 10 major peers, slumped 1.75 percent to 1,194.89, the most since the Fed announced bond purchases in March 2009. On Friday, the index reached the highest level based on closing prices going back to 2004.

The dollar depreciated 1 percent to 120.11 yen and lost 2.5 percent to $1.0864 per euro.

Source : Bloomberg