Article by ForexTime
The dollar hit a fresh seventeen-month low against the yen on Thursday as it extended its weakness following the FOMC minutes that were released late on Wednesday.
The minutes to the Federal Reserve’s March meeting revealed that officials advocating caution outnumbered those seeking action this month, supporting market perceptions that the Fed will not move until its June meeting at the earliest.
In the meeting the Fed scaled back its 2016 interest rate forecasts to two quarter-point rises, falling closer into line with subdued market expectations as it flagged up risks to the US outlook from financial markets and weaker growth abroad.
Since then, Fed Chair Janet Yellen has stressed that the Fed should “proceed cautiously” as it considers when to next lift rates, suggesting she does not want to rush ahead with a second increase.
The minutes also revealed that policy makers disagreed on other issues such as unemployment. They couldn’t agree whether the US is nearly at full employment and how much weight to put on a recent pickup in inflation and subdued inflation expectations.
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Article by ForexTime
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