2014.04.1614:08:00UTC+00Dollar Gains On Yen After Talk Of BoJ Easing

The dollar strengthened against the yen on Wednesday as the Bank of Japan hinted they will take measures to weaken their currency by this summer.

Hopes for monetary easing in Japan helped the dollar to Y102.30, with the buck snapping back after touching a monthly low.

Traders also considered a slew of economic data from the U.S. and Europe in addition to some slightly encouraging GDP figures out of China.

The dollar was stuck at $1.3812 versus the euro, unchanged from the previous session.

Modest losses were seen against the sterling after the U.K. unemployment rate unexpectedly tumbled in March.

The buck was at $1.6792 versus the sterling, down from $1.67 overnight.

The Federal Reserve will keep its benchmark interest rates at exceptionally low levels for a considerable time, Fed Chair Janet Yellen said Wednesday.

Yellen acknowledged that economic growth slowed over the winter, but suggested that a significant part of the weakness was due to unusually cold winter weather.

In economic news, China's gross domestic product expanded 7.4 percent on year in the first quarter of 2014, topping expectations for 7.3 percent growth following the 7.7 percent gain in the previous three months.

U.S. housing starts rose at the fastest pace in three months, moving up 2.8 percent to a seasonally adjusted annual rate of 946,000, the Commerce Department reported. However, that was short of economists' expectations for a rise to 965,000 units.

Meanwhile, building permits declined 2.4% to 990,000 units, against expectations of 1.01 million units.

Data from the Office for National Statistics showed that the U.K. unemployment rate declined below the 7 percent threshold during the three months to February. The jobless rate was 6.9 percent of the labor force, down from 7.1 percent in September to November period.

Eurozone annual inflation slowed as initially estimated to a 52-month low in March, while core inflation fell more than expected, final data from Eurostat showed. Inflation fell to 0.5 percent from 0.7 percent in February.