Dollar falls after Fed adjusts balance sheet reference in statement

FILE PHOTO: A U.S. Dollar note is seen in this June 22, 2017 illustration photo. REUTERS/Thomas White/Illustration/File Photo

(Reuters) - The dollar turned negative against a basket of major currencies on Wednesday, falling to its lowest levels of the day after the release of the Federal Reserve’s policy statement following its July meeting.

The Fed said it would begin implementing balance sheet normalization “relatively soon,” a change from its previous statement that said it would begin to reduce its bond holdings “this year.”

The dollar index, which measures the greenback against six world currencies, dropped 0.35 percent to 93.681, hovering just above a 13-month low touched on Tuesday.

Reporting by Dion Rabouin; Editing by Leslie Adler