Fed-driven Dollar Rally Fades Focus Shifts To Ecb Meeting


TOKYO – The dollar slipped back from three-week highs against the yen on Thursday, quickly erasing gains made after the Federal Reserve took a slightly more hawkish policy tone in signalling two more rate hikes by year-end thanks to a solid outlook for the world’s biggest economy.

The greenback’s bounce faded as traders booked profits before the European Central Bank’s meeting later Thursday, where policy makers are seen discussing the timing of winding down the ECB’s 2.55-trillion-euro (£2.24 trillion) bond-purchase programme.

The dollar last traded at 110.20 yen, down slightly on the day, having lost steam after hitting a three-week peak of 110.85 shortly after the release of the Fed’s latest policy statement.

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