Fed Disappoints the U.S. Dollar Bulls

The dollar nursed modest losses early on Thursday, having eased for a second straight session after recent remarks from the head of the Federal Reserve prompted markets to push back the timing of an eventual U.S. interest rate hike.

The euro edged up to $1.1362, up from this week’s trough of $1.1288, but remained stuck in a $1.12-$1.15 range held since hitting an 11-year trough of $1.1098 a month ago.  Against the yen, the greenback slipped to 118.86 yen, off this week’s high of 119.84. Yet, it too has been struggling for direction since peaking at a 7-1/2-year high of 121.86 yen in early December.

The dollar, however, made a clear break lower against both sterling and the Australian dollar. The pound touched a two-month high of $1.5538, while the Aussie dollar popped above 79 U.S. cents for the first time in a month.


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