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Currencies: Forex traders take Fed at its word as popular currency index tests 3-month low

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A popular dollar index fell back below a key reading onTuesday, threatening to take out a nearly 3-month low below 90, as Federal Reserve officials largely stick to the message of easy monetary policy.

The ICE U.S. Dollar IndexDXY, a measure of the dollar against a basket of six major rivals, was down 0.4% at 89.76 after trading just one tick above the Feb. 25 intraday low of 89.68.

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