That was a buy, not a sell, signal from the Fed.

On the face of it, the dollar's sell off on the Fed's decision to adopt a 2% inflation target and preserve its ultra-easy monetary policy "until at least late 2014" was pretty predictable.

But, since when were currencies just driven by interest rate predictions?

And, since when did a central bank predict its policy quite so far in advance?

And, since when was the Fed likely to hint at higher rates, send the dollar higher and put the country's nascent economic recovery at risk?

For starters, look at this new inflation target. 2%. But where is inflation now? 3%.

So how is the Fed planning to get inflation down to that target level when it is also having to fulfill its second, and equally important, central bank mandate--full employment--at the same time.

I am sure that the Fed will have fun juggling the two but to tell us how its policy will work three years hence in achieving this just seems like pie in the sky.

The Fed has already warned us about the risks the euro-zone debt crisis poses to the U.S. recovery.

And at the moment, there is little sign of this going away.

Germany is still refusing to increase the bail-out funds for Greece, and the European Central Bank is still refusing to take the same haircut as private sector holders of Greek bonds.

As tensions rise, the risk contagion to peripheral countries remains high and Portugal is now facing yields on its 10-year bonds over 14%. Given that yields over 7% are seen as unsustainable it seems only a matter of time that Lisbon will be seeking its own bail-out before European Union leaders have even been able sort out Greece.

If anything, the greater-than-expected dovish tone of the Fed's comments appear to be more a reflection of these euro-zone risks rather than one of recent U.S. data, which have consistently come in better than expected showing that the economic recovery is finally gaining traction.

There is certainly little suggestion that other major central banks are going to be any less dovish than the Fed. In most cases, they are likely to be more so with the European Central Bank and the Bank of England expected to increase their monetary easing next month and with the Bank of Japan downgrading, not upgrading, the outlook for Japan's already flattened economy.

All this, should help to make the dollar more, not less, attractive in the months to come, especially if the threat of a more serious meltdown continues to rise and investors are forced to seek the comfort of safe havens once again.

The Fed could be confronted with an unwelcome rally in the U.S. currency that would make life more difficult for U.S. exporters just as economy was starting to look up.

Of course, this is something the Fed would like to avoid.

So, perhaps analysts are ING Financial Markets are right with their argument that the Fed is using its policy forecasts more as a policy tool now the way it used to use FOMC text in the past.

"Is this new forecast simply another way to try to keep 10-year bond yields low...? Your guess is as good as mine but it is a possibility we should not ignore," said Rob Carnell, the bank's chief international economist.

If that is the case, and the Fed's forecasts are even more of a fantasy than they look now, then there is even more reason to buy the dollar as one of the few safe havens in this tumultuous world.

Bloomberg TNI FRX POV