Euro, yen higher as Fed minutes confirm dovish bias

[NEW YORK] The euro and yen pushed higher against the US dollar Wednesday after the minutes to the March meeting of the Federal Reserve confirmed the dovish bias of US policymakers.

The US dollar slipped to US$1.1398 per euro and to 109.76 yen. It was the strongest level for the yen against the greenback in almost 18 months.

The yen, still riding a wave of caution in financial markets, also strengthened to 125.10 per euro.

The record of the March 15-16 Federal Reserve policy meeting, which demurred once again on raising the Fed's benchmark interest rate, showed clear divisions over which way policy should move.

The general view was that however firm the US economy is, it remains under threat from the global downturn and market turmoil, and that it would be better to remain cautious and not rush into rate increases.

The minutes "kept the US dollar camped near lows for the year as they depicted a central bank erring on the side of caution and in no rush to raise interest rates," said forex market analyst Joe Manimbo at Western Union.

"They kept in place a hazy outlook for when the central bank would boost interest rates."

AFP