Investing.com – The dollar was trading close to three-week lows against the yen on Thursday after the minutes of the Federal Reserve’s March meeting dampened expectations that interest rates could rise as soon as next year.
USD/JPY touched lows of 101.64 and was last down 0.25% to 101.73, not far from the three-week low of 101.54 reached Tuesday.
The pair was likely to find support at 101.25 and resistance at 102.15, Wednesday’s high.
The Fed’s March meeting minutes released on Wednesday showed that official discussed whether to make a more explicit commitment to keeping short-term interest rates at record lows until inflation moves higher, but instead decided to wait.
The minutes also indicated growing concerns among officials over persistently low inflation.
"In light of their concerns about the possible persistence of low inflation, members agreed that inflation developments should be monitored carefully," the Fed minutes said.
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.”
“Members agreed that there was sufficient underlying strength in the broader economy to support ongoing improvement in labor-market conditions,” the minutes show.
Elsewhere, the euro slipped lower against the dollar, with EUR/USD down 0.13% to 1.3837, off highs of 1.3867.