The Federal Reserve must approach further rate hikes cautiously and gradually because of lingering external risks to the U.S. economy, despite some strength at home and welcome hints of inflation, an influential Fed official said on Friday.
The yen powered to a 17-month high against the dollar on Thursday, with the U.S. currency broadly under pressure after minutes of the Federal Reserve's meeting last month underscored its caution about future interest rate hikes.
All eyes in financial markets were on an appearance by Janet Yellen on Thursday after meeting minutes showed the U.S. Federal Reserve is still far from another rise in interest rates, driving the dollar to its weakest against the yen in 17 months.
U.S. employment increased solidly in March and wages rebounded, underscoring the economy's resilience, but the Federal Reserve is expected to remain cautious in raising interest rates this year due to slowing global growth. Non farm payrolls increased 215,000 last month, the Labor Department said on Friday. Data for January and February were revised slightly down to show 1,000 fewer jobs created than previously reported.