Investing.com - The dollar strengthened against the yen on Thursday after the Federal Reserve said it had no immediate plans to stimulate the U.S. economy with policy tools that would otherwise weaken the greenback.
In Asian trading on Thursday, USD/JPY hit 78.49, up 0.09%, up from a session low of 78.36 and off a high of 78.53.
The pair was likely to find support at 78.04, the low from July 31, and resistance at 79.13, the high of July 18.
The U.S. Federal Reserve wrapped up a two-day monetary policy meeting earlier and made no changes to interest rates or policy in general.
The world's largest economy continues to grow though its pace of recovery appears to be moderating.
"Growth in employment has been slow in recent months, and the unemployment rate remains elevated. Business fixed investment has continued to advance. Household spending has been rising at a somewhat slower pace than earlier in the year," the Federal Open Market Committee (FOMC), the Fed's monetary policy body, said in a statement.
"Despite some further signs of improvement, the housing sector remains depressed. Inflation has declined since earlier this year, mainly reflecting lower prices of crude oil and gasoline, and longer-term inflation expectations have remained stable."
The Fed's benchmark interest rate, the fed funds target, remain in place at 0.25%.
The Fed added economic conditions meriting loose policies will likely stick around through the end of 2014.
However, the U.S. central bank said it would stay on the sidelines with no plans, for now, to stimulate the economy via tools such as quantitative easing, which are bond purchases from banks that flood the economy with liquidity, weakening the dollar in the process to spur recovery.
"The Committee will closely monitor incoming information on economic and financial developments and will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability," the Fed added.
Surprisingly strong data on U.S. private sector employment further bolstered the greenback against the yen.
U.S. payroll processor ADP reported earlier that the private-sector increased headcount by a seasonally adjusted 163,000 in July, beating expectations for an increase of 120,000.
June’s figure was revised down to 172,000, slightly lower that the initial estimate of 176,000.
The ADP figure serves as a weather vane for the official number, which will publish on Friday.
The yen was down against the pound and down against the euro, with GBP/JPY up 0.68% and trading at 123.50 and EUR/JPY up 1.14% and trading at 97.13.
In Asian trading on Thursday, USD/JPY hit 78.49, up 0.09%, up from a session low of 78.36 and off a high of 78.53.
The pair was likely to find support at 78.04, the low from July 31, and resistance at 79.13, the high of July 18.
The U.S. Federal Reserve wrapped up a two-day monetary policy meeting earlier and made no changes to interest rates or policy in general.
The world's largest economy continues to grow though its pace of recovery appears to be moderating.
"Growth in employment has been slow in recent months, and the unemployment rate remains elevated. Business fixed investment has continued to advance. Household spending has been rising at a somewhat slower pace than earlier in the year," the Federal Open Market Committee (FOMC), the Fed's monetary policy body, said in a statement.
"Despite some further signs of improvement, the housing sector remains depressed. Inflation has declined since earlier this year, mainly reflecting lower prices of crude oil and gasoline, and longer-term inflation expectations have remained stable."
The Fed's benchmark interest rate, the fed funds target, remain in place at 0.25%.
The Fed added economic conditions meriting loose policies will likely stick around through the end of 2014.
However, the U.S. central bank said it would stay on the sidelines with no plans, for now, to stimulate the economy via tools such as quantitative easing, which are bond purchases from banks that flood the economy with liquidity, weakening the dollar in the process to spur recovery.
"The Committee will closely monitor incoming information on economic and financial developments and will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability," the Fed added.
Surprisingly strong data on U.S. private sector employment further bolstered the greenback against the yen.
U.S. payroll processor ADP reported earlier that the private-sector increased headcount by a seasonally adjusted 163,000 in July, beating expectations for an increase of 120,000.
June’s figure was revised down to 172,000, slightly lower that the initial estimate of 176,000.
The ADP figure serves as a weather vane for the official number, which will publish on Friday.
The yen was down against the pound and down against the euro, with GBP/JPY up 0.68% and trading at 123.50 and EUR/JPY up 1.14% and trading at 97.13.