The dollar was mired at a more than two-year low on Thursday as the Federal Reserve repeated a pledge to limit damage from the pandemic as surging new coronavirus cases hamper the economy. The Fed's policy statement released at the close of its two-day meeting directly tied the economic recovery to an end the coronavirus health crisis. The dollar has been tumbling on expectations that the Fed will continue its ultra loose monetary policy for years to come and on speculation that it will allow inflation to run higher than it has previously indicated before raising interest rates. The dollar index fell 0.52% on Wednesday and steadied at around 93.275, its lowest in more than two years. The dollar traded at 104.97 yen , having fallen to 4-1/2-month low of 104.77 hit in previous trade. The dollar's decline came as investors started to doubt the conventional wisdom that U.S. economic growth and investment returns from the U.S. currency would be higher than many other countries.