Fed signals send US dollar lower as Europe returns

[LONDON] The dollar hit a 3-week low against the yen on Thursday, down 2 full yen since a statement by the US Federal Reserve on Wednesday that undermined any expectations of a rise in interest rates by June.

The US currency extended already substantial losses from Wednesday to trade at 111.675 yen as trading in European markets gathered pace, down 0.7 per cent since the close of trade in New York.

It fell more than 1 per cent to its lowest in more than 8-1/2 months against the Australian dollar and a quarter of a per cent to a 1-month low against the euro at US$1.1251.

The dollar index was trading just above a 1-month low hit in Asian time, at 95.424.

REUTERS