WASHINGTON, March 22 Reuters The dollar slid on Wednesday after the U.S. Federal Reserve raised its key rate by a quarter of a percentage point, as widely expected, and pointed to just one more rate hike this year.

The Fed projected at least one additional interest rate increase of 25 basis points by the end of 2023, but suggested that could represent at least an initial stopping point for the rate hikes.

The dollar index last fell 0.63 to 102.500, with the euro up 0.87 to 1.0861.

The dollar fell 0.82 against the Japanese yen , while Sterling was last trading at 1.2268, up 0.41 on the day.

In a key shift driven by the sudden failures this month of Silicon Valley Bank SVB and Signature Bank, the Fed39;s latest policy statement no longer says that ongoing increases in rates will likely be appropriate. That language had been in every policy statement since the March 16, 2022 decision to start the ratehiking cycle.

I think the Fed did take the path of least resistance here, hiking but also providing a relatively dovish outlook on rates over the year ahead. That essentially gives markets what they were looking for, said Karl Schamotta, chief market strategist at Corpay.

Markets had projected a quarterpoint rise in U.S. rates, but investors were also paying close attention to Fed Chair Jerome Powell39;s comments about the crisis that has rattled global banks this month.

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