The yen rose on Thursday, reaching a three-week peak against the dollar, as traders piled into the Japanese currency in a safe-haven move spurred by global trade tension and losses in stocks.
The greenback was little changed, however, against a group of currencies, including the yen. It rebounded from a near one-month trough reached earlier Thursday in the wake of hints the Federal Reserve, led by Fed Chairman Jerome Powell, is not prepared to raise interest rates more than three times in 2018 as data have showed inflation is not accelerating.
"As the dust has settled, the market gave what Powell said during his press conference a dovish spin," said Jack McIntyre, portfolio manager at Brandywine Global in Philadelphia.
The Fed raised U.S. interest rates by 25 basis points to 1.75 percent on Wednesday and signaled two more hikes for 2018, but dollar bulls were expecting a total of four rate hikes in 2018. With the Fed meeting in their rear-view mirror, traders turned to trade tariffs that U.S. President Donald Trump is expected to impose on China, which have stoked concerns about retaliation from the world's second-largest economy.