Investing.com - The dollar was steady at six-week highs against the yen on Thursday after the Federal Reserve indicated that it is still on track for two more interest rate hikes this year.
USD/JPY was trading at 112.74 by 07.18 GMT after touching an overnight high of 112.9, the strongest level since March 21.
The Fed concluded its two-day policy meeting Wednesday afternoon, giving a positive assessment of the U.S. economy while keeping rates unchanged, as was widely expected.
The Fed said it expects the economy to rebound after hitting a soft patch in the first three months of the year, noting that the labor market looks solid and inflation is running close to its target.
The hawkish Fed statement indicated that policymakers think the recent weakness in the economy was temporary and that more rate hikes are coming this year.
Markets are pricing in around a 70% chance of a hike at the Fed's June meeting, according to Investing.com’s Fed Rate Monitor Tool. Odds of a September increase are seen at about 85%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 99.27.
The euro was little changed, with EUR/USD at 1.0888 after falling 0.41% in the previous session.
The euro has fallen back after rallying to five-and-a-half month peaks last week amid relief over the results of the first round vote in the French presidential elections.
Sterling slipped lower, with GBP/USD down 0.15% to 1.2850 ahead of survey data on the UK service sector, which was expected to show a small slowdown in growth last month.
Meanwhile, the Australian and New Zealand dollars were lower. AUD/USD was down 0.32% at 0.7398 and NZD/USD lost 0.19% to trade at 0.6863.