Dollar steadies as Fed leans on dovish side

16 March, 2017

The dollar steadied at lower levels Thursday after losses overnight as the FOMC leaned on the dovish side.As expected the Fed raised its target rate by 25 basis points but signaled only two more hikes this year.The dollar index was off 0.01% at 100.35 at 03:30 ET after falling 1% overnight.The FOMC indicated the pace of the economic recovery warranted "gradual" tightening.Chair Janet Yellen hinted the Fed would tolerate inflation above its 2% target.In its statement the Fed said the target is "symmetric." Yellen said: "Two percent is not a ceiling."The dollar was off 0.31% at 113.04 yen as the BoJ as expected kept its policy on hold.The BoJ short-term key lending rate remains at minus -0.1% and its target for the 10-year bond yield at zero.The euro hit the $1.07 mark as the outcome of the Dutch elections helped assuage fears of growing populism.PM Mark Rutte's Liberals defeated Geert Wilders' anti-Islam, anti-EU Freedom Party.Attention now turns to the first round of the French presidential election next month.

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