Dollar mixed in Asia after Fed meeting
TOKYO - The dollar was mixed in Asian trade on Thursday after the US Federal Reserve gave no indication that it was considering raising its super-low interest rates any time soon.
The greenback slipped to 90.56 yen in Tokyo morning trade from 90.75 late Wednesday in New York.
The dollar recovered some of the previous day's losses against the euro, which had benefited from expectations that the Fed's continued highly stimulative monetary policy will support demand for risky assets.
The euro fell to $1.4841 from $1.4865 and to 134.42 yen from 134.84.
The Federal Open Market Committee (FOMC) said that "although economic activity is likely to remain weak for a time," its policy actions would support the recovery.
"A large part of the recent sell-off in risk-correlated assets over the past 2 weeks (and dollar strength) has been driven by concerns that the Fed would this week change its rhetoric to indicate a timetable for its exit strategy," Barclays Capital analysts wrote in a note to clients.
"The FOMC continued to indicate that it expects to keep rates exceptionally low for 'an extended period,' however," which could lead to increased demand for risky investments, they added.
Investors' eyes were turning to the outcome of the Bank of England's policy board meeting later in the day.
The BoE will on Thursday decide whether to inject billions of extra pounds into the British economy to help get it out of its longest recession on record.
The European Central Bank also meets Thursday and is widely expected to left its benchmark lending rate unchanged at 1%.