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Dollar Paring Early Losses After Release Of Fed Minutes

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The dollar got off to a weak start against its major rivals Wednesday, but has since bounced back to nearly unchanged levels following the release of the minutes from most recent Federal Reserve meeting.

The Federal Reserve discussed the need to slow down the economy, according to minutes of the March FOMC meeting released Wednesday.

Some member say that "monetary policy eventually would likely gradually move from an accommodative stance to being a neutral or restraining factor for economic activity," the minutes said.

"All participants agreed that the outlook for the economy beyond the current quarter had strengthened in recent months," the minutes said.

Consumer prices in the U.S. edged lower in the month of March, according to a report released by the Labor Department on Wednesday. The Labor Department said the consumer price index dipped by 0.1 percent in March after rising by 0.2 percent in February. Economists had expected consumer prices to come in unchanged.

The dollar fell to a 2-week low of $1.2396 against the Euro Wednesday, but has since rebounded to around $1.2360.

Eurozone house prices grew at a faster pace in the fourth quarter, Eurostat reported Wednesday. House prices increased 4.2 percent year-on-year in the fourth quarter, faster than the 4 percent rise in the third quarter.

France manufacturing confidence deteriorated in March, survey data from Bank of France showed Wednesday. The manufacturing sentiment index fell to 103 in March from 105 in February. The score was forecast to remain unchanged at 105.

The buck dropped to a 2-week low of $1.4223 against the pound sterling Wednesday, but has since bounced back to around $1.4175.

UK industrial production growth eased more-than-expected on weak mining and manufacturing output in February, the Office for National Statistics said Wednesday. Industrial output edged up 0.1 percent month-on-month in February, compared to January's 1.3 percent increase. Production was expected to climb 0.4 percent.

The UK visible trade deficit narrowed to a 5-month low in February, the Office for National Statistics said Wednesday. The trade in goods showed a shortfall of GBP 10.2 billion in February versus a GBP 12.2 billion deficit posted in January. This was the lowest shortfall since last September.

The greenback fell to a low of Y106.648 against the Japanese Yen Wednesday, but has since climbed back to around Y106.925.

Core machine orders in Japan advanced a seasonally adjusted 2.1 percent on month in February, the Cabinet Office said on Wednesday, coming in at 891.0 billion yen. That beat forecasts for a decline of 2.5 percent following the 8.2 percent spike in January.

Producer prices in Japan were down 0.1 percent on month in March, the Bank of Japan said on Wednesday. That was in line with expectation s following the upwardly revised 0.1 percent increase in February.

Overall bank lending in Japan was up 2.0 percent on year in March, the bank of Japan said on Wednesday, coming in at 523.076 trillion yen. That follows the 2.1 percent increase in February.

by RTTNews Staff Writer

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