LONDON: The dollar was higher against the yen and the euro in Asian trade Thursday, with the U.S. currency regaining some ground following falls after the Federal Reserve surprised markets with its dovish tone.
The dollar USDJPY, +0.36% were at ¥120.53, compared with ¥120.09 late Wednesday in New York. The euro EURUSD, -0.76% was at $1.0775 from $1.0862.
The Fed wrapped up its two-day policy setting meeting Wednesday and dropped from its statement a pledge that it will be “patient” before raising rates as had been widely expected. What surprised investors was the Fed’s downbeat outlook for U.S. growth and inflation estimates, as well as for interest rates over the longer term.
During Asia trade, the greenback was weaker early in the session, tracking an overnight selloff that set the dollar into tailspin to ¥119.29–it’s lowest since Feb. 27. Then, dip buying kicked in to bring the dollar as high as ¥120.48 midday.
