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The dollar and the euro remained largely unchanged Wednesday as the Federal Reserve and the European Central Bank hinted that they were willing to keep interest rates unchanged in the face of signs of slowing economic growth and risks from trade tensions.
Among the major currencies, the Norwegian Krona was the biggest gainer on the day, after stronger-than-expected inflation data boosted market expectations for a further interest rate hike by the central bank in the coming months.
On Wednesday, the Federal Reserve released the minutes of its March 19-20 meeting, at which policymakers hinted that they would not raise interest rates in 2019 and would stop shrinking by September.
"It supports the Fed's patience," Cliff Corso, executive chairman of Insight Investment, said of the Fed's minutes.
Earlier, ECB President Draghi highlighted the risks facing the euro zone economy, which strengthened market forecasts for further stimulus measures to prevent the region from falling into recession. He said this at a news conference, after policymakers kept their easing policies unchanged.
He also pointed out that trade disputes pose risks to regional business activities. Earlier, US President Trump threatened to impose tariffs on 11 billion US dollars worth of EU goods.
"Given the dramatic slowdown in their economy, the ECB will remain in place for a long time," Corso said.
In late New York trading, the euro rose 0.09% to $1.1272, but fell 0.09% to 125.085 yen against the yen.
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