Investing.com - The U.S. dollar was trading close to five-month lows against the Canadian dollar on Thursday after the Federal Reserve reiterated that rates will stay low for a relatively long period of time.
USD/CAD touched lows of 1.0811, the weakest since January 8 and was last down 0.12% to 1.0824.
The pair was likely to find support at 1.0770 and resistance at 1.0875.
The greenback weakened broadly after the Fed gave no indication of when interest rates could start to rise at the conclusion of its two-day meeting on Wednesday. In addition, the Fed’s forecast of where interest rates might reach in the long term fell from 4% to 3.75%.
The central bank cut its bond purchases by $10 billion a month, to $35 billion, saying there was "sufficient underlying strength" in the U.S. economy to continue tapering.
The Fed acknowledged the recent increases in inflation and drop in unemployment, but Chair Janet Yellen said no formula was in place for when interest rates would start to rise.
The pair showed little reaction after data on Thursday showed that the number of people who filed for unemployment assistance in the U.S. last week fell more than expected.
The Labor Department reported that the number of people filing for jobless benefits in the week ending June 14 declined by 6,000 to 312,000 from the previous week’s revised total of 318,000.
Analysts had expected jobless claims to fall by 4,000.
The U.S. was to release data on manufacturing activity in the Philadelphia region later in the trading day.
Elsewhere Thursday, the loonie, as the Canadian dollar is also known, was slightly lower against the firmer euro, with EUR/CAD rising 0.15% to 1.4754.
Please LIKE our Facebook page - it makes us stronger: