The dollar hovered below a 10-month peak against several major currencies on Thursday. Mixed views from the Federal Reserve tempered the rally after encouraging U.S. growth data. The dollar index last traded at 81.386 after increasing as much as 81.545, a high from last September, reports Reuters.
The greenback traded higher across the board at 1.34 against the euro and 103 against the yen.
On Wednesday the Fed confirmed it would be raising interest rates no time soon, even as it upgraded its assessment of the U.S. economy and expressed some comfort that inflation was increasing toward its target.
Junichi Ishikawa, market strategist at IG Securities in Tokyo said that any selling that resulted from the Fed meeting, "is likely to be temporary. It gave a fair view on the economy and despite expressing concern about the labor market, it took note of declining unemployment. Most important of all, it made a more confident assessment on inflation," according to Reuters.
For the remainder of 2014, the Fed should provide a more supportive position for the dollar as it continues to move to a less dovish policy. However, the markets are expected to want to take a timeout ahead of the NFP regardless, reports Forbes.
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