Dollar gains vs yen as data prompts profit-taking

By Steven C. Johnson NEW YORK (Reuters) - The dollar rose against the yen and recouped some losses against commodity currencies on Thursday after encouraging U.S. data prompted some profit-taking on the greenback's recent slide. The euro, though, swung between gains and losses and remained near a 14-month peak above $1.49 as investors debated when the Federal Reserve will raise U.S. interest rates from current record lows near zero. Minutes from the Fed's last meeting showed officials don't see inflation as an imminent risk, suggesting interest rates may stay low for some time. In that case, investors should continue to favor higher-yield currencies over the greenback. This outlook has helped push the dollar down about 2 percent against a basket of major currencies over the past two weeks . It has lost about 7 percent so far... [read full story]                    

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