The dollar hardly budged against currencies today as the Federal Reserve's rate cut left the market divided over the outlook for the US economy while the threat of Japanese intervention capped the yen.
The greenback edged up in New York trade, after the Fed cut its benchmark rate by 25 basis points to a four-decade low of 1 per cent, citing risks of a further fall in inflation.
In response, US stocks slipped while Treasuries suffered their worst sell-off in six months. "Financial markets had expected a 0.50-percentage point cut. I think that is why US shares and Treasuries fell," said Mr Junya Tanase, global markets officer at JP Morgan Chase.
The Fed was sanguine about prospects for future growth, saying it saw firmer spending, improved financial conditions and signs of stabilising labour markets.
But it also noted the economy had yet to show sustainable growth and voiced concern about the risk of deflation, leaving doubts about a US recovery in the second half of this year. A sharp fall in US durable goods orders also underscored such concerns.
The euro was flat from late US levels at $1.1531 It was also steady at 136.13 yen versus 136.11 yen.
Some players think the euro, which has been falling sharply since it peaked in mid-June, is prone to further position adjustments.
Dollar bulls also say the greenback could grab an upper hand on the euro if the US economy begins to show clear signs of recovery.