Corporate foreign exchange news

The dollar hit a 13-month low on a trade-weighted basis yesterday after the Federal Reserve's Open Market Committee's assessment of the prospects for growth and stability in the US economy.However, the Financial Times reports that the dollar rebounded from a 0.4 per cent loss against the euro at the end of trading in New York to finish up 0.2 per cent.The late buying activity came as traders took encouragement from the Fed's pledge to keep interest rates low for a sustained period, while also putting plans to ease fiscal stimulus measures on the backburner.Mark Spindel, chief investment officer at Potomac River Capital LLC in Washington, a hedge fund with about $100 million under management, told Bloomberg that the 'resource slack' identified by the Fed will have an important influence in assessment of inflation risks over the coming months."Slack is important to their thinking about inflation and inflation expectations. They are sending a clear message that rates will stay low for longer," he claimed.