Greenback weakens on Fed's cautious language

London

THE US dollar fell to a three-week low against the yen on Thursday as investors cut favourable bets after minutes of the Federal Reserve's last meeting prompted many to push out expectations for the likely timing of an interest rate rise.

US Treasury yields and the implied rates on Fed fund futures retreated sharply on word of the minutes, with the market not seeing any appreciable rise in the Fed's target rate until around September 2015, from June 2015 previously.

The US dollar, which has a good correlation with US yields and rate expectations, fell 0.5 per cent to 107.55 yen on trading platform EBS, its lowest p…