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Euro pushes higher for second session

The euro climbed against the dollar for a second straight day on Thursday despite comments from the International Monetary Fund that eurozone growth was too weak and inflation "worryingly low."

NEW YORK: The euro climbed against the dollar for a second straight day on Thursday despite comments from the International Monetary Fund that eurozone growth was too weak and inflation "worryingly low."

The continued dovish stance of the US Federal Reserve, reiterated on Wednesday in a new policy statement, appeared to be still guiding markets, according to analysts.

Fed Chair Janet Yellen said the economy was growing steadily and dismissed a fresh uptick in US inflation as "noise" reflecting some short-term distortions.

This suggests that the Fed still sees a low-inflation environment for the next year or more.

"Unlike other central banks that have recently expressed their desire to become more active, the Fed remains comfortable with their current course and has no desire to alter the market's expectations," said Kathy Lien of BK Asset Management.

"While we don't expect a significant sell-off in the dollar, the greenback should extend its losses against the currencies of central banks who are looking to tighten."

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