Investing.com - The dollar erased losses against the yen on Wednesday after Russian President Vladimir Putin said Russian troops had pulled back from Ukraine’s borders, but gains were held in check after Federal Reserve Chair Janet Yellen reiterated the bank’s intention to keep interest rates on hold near zero for the foreseeable future.
USD/JPY was last trading at 101.74, after falling as low as 101.43 earlier in the session.
The pair was likely to find support at 101.25 and resistance at 101.75, the session high.
Concerns over the crisis in Ukraine eased after President Putin called on separatists in eastern Ukraine to postpone their referendum on independence, and added that Russia had withdrawn its forces from the border with Ukraine.
He also said that Russia will do "all it can" to resolve the crisis and will take a "most positive" approach to international peace efforts.
The dollar’s gains were checked after Fed Chair Janet Yellen said a high degree of monetary accommodation remains warranted, and added that while conditions in the labor market have improved, they are far from satisfactory.
Ms. Yellen also said the Fed expects economic growth to accelerate this year despite the slowdown in growth in the first quarter but warned that the recent housing market slowdown "could prove more protracted than currently expected."
Data last week showed that the U.S. economy expanded just 0.1% in the first three months of the year.
The comments came during testimony to the Congressional Joint Economic Committee.
The dollar was little changed against the euro, with EUR/USD trading at 1.3921, not far from not far from the eight-week peaks of 1.3950 struck on Wednesday.
Elsewhere, the euro pared back losses against the yen, with EUR/JPY at 141.63, off session lows of 141.16.
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