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Dollar remains mostly lower vs. rivals after Fed minutes

Published 04/10/2014, 07:38 AM
Dollar remains broadly lower against counterparts
EUR/USD
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Investing.com - The dollar remained mostly lower against the other main currencies on Thursday after the minutes of the Federal Reserve’s March meeting indicated that rates are likely to remain on hold for some time, while the pound remained steady after the Bank of England left its monetary policy unchanged.

USD/JPY slipped 0.22% to 101.76 after falling as low as 101.41 earlier, the lowest since March 19.

The Fed’s March meeting minutes released on Wednesday showed that policymakers discussed whether to keep interest rates at record lows until inflation moves higher, and did not elaborate on a possible timeframe for when rates could start to rise.

The minutes also indicated growing concerns among officials over persistently low inflation.

Last month the U.S. central bank reduced the monthly pace of purchases by $10 billion, to $55 billion, and repeated it is likely to continue paring the program in “further measured steps.”

Elsewhere, EUR/USD touched highs of 1.3875, the strongest since March 24 and was last trading at 1.3869.

Sterling rose to four-and-a-half year highs of 1.6820 against the dollar and GBP/USD was last trading at 1.6775.

The BoE said it was maintaining the benchmark interest rate at 0.50%, in a widely anticipated move. The bank also said it was to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375 billion.

The dollar slid to three-week lows against the Swiss franc, with USD/CHF slipping 0.16% to 0.8781.

The Australian dollar rose to fresh four-and-half month highs, with AUD/USD rising 0.29% to 0.9416. The Aussie was boosted after official data on Thursday showed that the number of employed people in Australia rose by 18,100 in March, exceeding expectations for a 5,000 rise.

Australia's unemployment rate ticked down to 5.8% last month, from 6.1% in February.

NZD/USD fell 0.14% to 0.8702, while USD/CAD edged up 0.13% to trade at 1.0895.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.08% to 79.54.

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