Tokyo - The dollar edged down on Thursday after minutes from the US Federal Reserve's last policy meeting all but ruled out a June interest rate hike.
In Tokyo, the greenback slipped to 121.17 yen, from 121.32 yen in New York.
The euro crept up to $1.1114 and 134.66 yen from $1.1096 and 134.61 yen in US trade.
The Fed minutes suggested that a June interest rate hike was unlikely and that policymakers were worried about the outlook for the world's top economy.
“Many participants” at the Fed policy meeting “thought it unlikely that the data available in June” would meet conditions required for a rate hike, the minutes said.
The board expressed concern about weak economic reports in the first quarter, although they were generally viewed as being caused by “transitory” factors, such as severe winter weather and a West Coast port strike that ended in late February.
Since the April meeting, a batch of tepid economic data has further muddied the waters for the Fed, which is considering a rate hike from record lows, where they have been since late 2008 during the financial crisis.
Traders will be tracking the Bank of Japan's two-day policy meeting, which started on Thursday.
While the bank is not expected to expand its 80 trillion yen stimulus programme after better-than-expected first-quarter growth data this week, it could improve its outlook for the economy.
However, the yen remains under pressure because of the BoJ's loose monetary policy. It has slumped 3.2 percent over the past month against a basket of nine developed-nation counterparts, according to Bloomberg News.
“The pressure on the yen from the BoJ's monetary easing is showing up across currencies, wherever traders can see chances to make gains,” said Daisaku Ueno, chief currency strategist at MUFJ Morgan Stanley in Tokyo.
“Expectations for an imminent BoJ easing have diminished but those for prolonged monetary easing are growing.”
AFP