The U.S. dollar inched higher against the yen and some other currencies Thursday, paring losses from the Federal Reserve's decision to expand monetary stimulus, but it slipped versus the euro after regional leaders moved closer to a banking union. The ICE dollar index , which measures the greenback's performance against a basket of six other major currencies, rose to 79.875, up from 79.858 in North America late Wednesday. The dollar had slipped Wednesday after the Federal Reserve said it would buy $45 billion worth of additional long-maturity securities. It also said it would maintain its ultra-low interest rates until the unemployment rate drops below 6.5%, unless inflation accelerates. Against the Japanese yen, the dollar traded at ¥83.64, rising further from the ¥83.26-level it hit overnight. “Many Japanese exporters put currency hedges in place around ¥83 to protect against adverse Japanese yen strength; if these firms believe the pair will have a sustained move above ¥83, then you may see a number of them unwind [them], pushing U.S. dollar/yen even higher," said Stan Shamu, a strategist at IG Markets. The euro edged slightly up to $1.3081 from $1.3070 late Wednesday. The gains, coming on top of the appreciation overnight, held following news that European Union finance ministers reached an agreement to move the bloc closer to a banking union by bringing the region's largest lenders under a single supervisory authority. With the Swiss National Bank's monetary policy decision due later Thursday, the Swiss france was stuck in a tight range. The dollar changed hands at 0.9266 francs, little changed from 0.9264 francs earlier, while the euro traded at 1.212 francs, up from 1.211 francs. Among other major currency pairs, the British pound was at $1.6141, down slightly from $1.6146, while the Australian dollar climbed to $1.0552 from $1.0544. Marketwatch
