TOKYO: The dollar was mixed in Asia Thursday after it rose on Federal Reserve Chair Janet Yellen's comments that the central bank would keep paring back its stimulus as the US economy recovers.
In midday Tokyo trading, the greenback bought 101.89 yen, slightly higher than 101.87 yen in New York Wednesday afternoon after Yellen's congressional testimony.
The euro strengthened to $1.3916 and 141.79 yen, against $1.3911 and 141.74 yen in US trade, as the European Central Bank (ECB) holds a policy meeting later in the day.
The dollar's rise was capped by Yellen's reiteration of the Fed's overall dovish stance, saying that the economy still needs the help of ultra-low interest rates and that there was still no threat from inflation. A speedier pull back on the Fed's monetary easing would tend to boost the dollar.
The top US central banker also cautioned over the high level of slack in the jobs market and the slowdown in the real estate market as reasons to keep the Fed's quantitative easing plan in place for the time being.
"Risk assets in general enjoyed a positive session as Yellen's cautious comments on US housing market soothe worries of any hawkish surprise while President Putin's seemingly calmer comments also helped," Credit Agricole said.
Russian President Vladimir Putin told pro-Russian rebels fighting in east Ukraine to halt plans for independence referendums, easing some tension in the simmering crisis.
The ECB is widely expected to hold off launching fresh stimulus measures at its monthly meeting Thursday.
But investors were keen to hear ECB chief Mario Draghi's post-meeting comments as speculation builds that the threat of eurozone deflation could force policymakers to act.
"The ECB... remains under pressure to ease policy further," National Australia Bank said.
"Even if the ECB Council decide to delay easing for a month, we can expect Draghi will talk down the euro and attempt to persuade markets that the ECB stands ready to act."
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