The yen held weaker in Asia on Friday after the Federal Reserve decided to stand pat on monetary policy in the face of global economic volatility. USD/JPY changed hands at 120.18, up 0.14%, while AUD/USD traded at 0.7177, up 0.03%. EUR/USD traded at 1.1420, down 0.13%. Ahead in Asia come remarks by Reserve Bank of Australia Governor Glenn Stevens and the board meeting minutes from the Bank of Japan. The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, fell 0.08% to 94.56. Overnight, citing the negative effects of global economic weakness on U.S. inflation, the FOMC voted to leave its benchmark Federal Funds Rate at its current level between zero and 0.25% on Thursday. Nearly a decade has passed since the U.S. central bank has last raised short-term rates. “Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term,” the FOMC said in a statement. Adopting a relatively dovish stance, Fed chair Janet Yellen said the U.S. central bank will begin monetary policy normalization when it has seen “further improvement in the labor market,” and it is “reasonably confident” that inflation is moving toward its targeted goal of 2%. Yellen also noted that large drags from falling energy and import prices should dissipate in the near future allowing long-term inflation to move back toward its long-term target. Still, the Fed downgraded its median inflation forecasts at the meeting to 0.3% for the end of 2015, while lowering inflation expectations for the end of next year to 1.7%. The Fed now expects that inflation will not reach its 2.0% target until 2018. The Fed also lowered its median forecasts for the Fed Funds Rate for the end of the year to 0.4%, from previous estimates of 0.6%. A bevy of short-term rates such as debt for credit card holders are pegged to the benchmark, which banks use to lend to other institutions on overnight loans. The Fed also lowered its rate forecasts for 2016 and 2017 to 1.7 and 1.9% respectively, representing a decline of 0.1% for each year. In addition, the FOMC said four of its members do not see a rate hike occurring in 2015, up from two in June. One member of the FOMC, Richmond Fed president Jeffrey Lacker, dissented, recommending a 0.25% interest rate hike at the meeting.