- Fed minutes show policy-makers stick with patience on rates
- ECB's Draghi points to weak regional data, risks from trade
- U.S. CPI posts biggest increase in 14 months
- Norwegian crown gains on unexpectedly strong inflation data
- Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Updates market action, adds quotes)
The dollar and euro were little changed on Wednesday as the Federal Reserve and the European Central Bank hinted they are willing to leave interest rates alone amid signs of flagging growth and risk from trade tensions.
Among major currencies, the Norwegian crown was the day's biggest gainer following stronger-than-expected inflation data that raised expectations of another interest rate hike from the central bank in the coming months.
The Fed on Wednesday released the minutes on its March 19-20 meeting at which policy-makers signaled they would not raise rates in 2019 and they would stop shrinkage of its bond holdings by September.
"It supports the Fed on its patient path," Cliff Corso, executive chairman of Insight Investment in New York, said of the Fed minutes.
Earlier, President Mario Draghi underscored the risks facing the euro zone economy, reinforcing bets on possible further stimulus to prevent the region from slipping into recession. He was speaking at a press conference after a meeting where policy-makers left their easy policy unchanged.
He also cited the risks from trade disputes to regional business activity after U.S. President Donald Trump threatened to impose tariffs on $11 billion worth of European Union goods.
"Given their significant slowdown, the ECB is going to be on hold for a long time," Corso said.
In late U.S. trading, the euro was up 0.09% at $1.1272 EUR= but was 0.09% lower at 125.085 yen EURJPY= .
The greenback was bolstered earlier Wednesday by the latest reading of the U.S. consumer price index.
The U.S. government's broadest inflation gauge rose 0.4% in March, the biggest monthly increase since January 2018, while the CPI core rate, which excludes volatile food and energy prices, edged up 0.1%, falling short of the 0.2% gain forecast by analysts polled by Reuters.
The somewhat mixed CPI report soothed worries about price growth fading, but did not dispel the view the Federal Reserve may lower key U.S. interest rates by early 2020, analysts said.
An index that tracks the greenback against a basket of currency .DXY was down 0.08% at 96.933.
The dollar weakened to 2-1/2 week lows against the Norwegian crown, last down 0.72% at 8.4956. NOK=
The euro EURNOK= fell to a near five-month low at 9.5768 crown.
Norway's currency rose after the domestic core CPI for March came in at 2.7%, beating market expectations of a 2.5% increase.
Just behind the crown was the Australian dollar AUD=D4 which gained 0.61% at $0.71665 after touching the highest levels in six weeks.
======================================================== Currency bid prices at 3:03PM (1903 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1271 $1.1261 +0.09% +0.00% +1.1286 +1.1230 Dollar/Yen JPY= 110.9400 111.1200 -0.16% +0.00% +111.2700 +110.8500 Euro/Yen EURJPY= 125.06 125.15 -0.07% +0.00% +125.4400 +124.7900 Dollar/Swiss CHF= 1.0025 0.9997 +0.28% +0.00% +1.0033 +0.9993 Sterling/Dollar GBP= 1.3083 1.3060 +0.18% +0.00% +1.3120 +1.3045 Dollar/Canadian CAD= 1.3317 1.3328 -0.08% +0.00% +1.3362 +1.3306 Australian/Doll AUD= 0.7166 0.7122 +0.62% +0.00% +0.7174 +0.7110 arEuro/Swiss EURCHF= 1.1302 1.1262 +0.36% +0.00% +1.1304 +1.1255 Euro/Sterling EURGBP= 0.8615 0.8626 -0.13% +0.00% +0.8638 +0.8592 NZ NZD= 0.6759 0.6743 +0.24% +0.00% +0.6773 +0.6739 Dollar/DollarDollar/Norway NOK= 8.4948 8.5572 -0.73% +0.00% +8.5680 +8.4901 Euro/Norway EURNOK= 9.5785 9.6350 -0.59% +0.00% +9.6482 +9.5742 Dollar/Sweden SEK= 9.2594 9.2576 +0.13% +0.00% +9.2923 +9.2342 Euro/Sweden EURSEK= 10.4393 10.4260 +0.13% +0.00% +10.4490 +10.4060 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ REER valuations http//tmsnrt.rs/2D48yAsWorld FX rates in 2019 http://tmsnrt.rs/2egbfVh
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