* Fed not as hawkish as many anticipated, dollar hits 1-mth
* Dutch exit polls give big lead to current prime minister
* Euro/dollar hits 5-week high on Dutch exit polls
By Shinichi Saoshiro
TOKYO, March 16 The dollar wallowed at a
one-month low early on Thursday after the U.S. Federal Reserve
sounded less hawkish as anticipated following its latest policy
decision, while the euro stood tall as Dutch election exit polls
gave the country's prime minister a big lead over his far-right
The dollar index against a basket of major currencies
extended losses from the previous day, when it slid more than 1
percent, to touch 100.490, its lowest since Feb. 17.
The greenback took a knock after the Fed ended their two-day
policy meeting on Wednesday by increasing interest rates but
stuck to their projections of three total rate hikes in 2017,
instead of the four some had grown to expect.
U.S. Treasury yields fell sharply in reaction to the Fed's
stance, prompting the dollar to fall more than 1 percent against
the yen. The dollar, which went as high as 115.195 yen earlier
this week, last stood at 113.420.
The euro climbed to a five-week high of $1.0740 early
on Thursday, after surging 1.2 percent overnight.
The common currency was boosted as exit polls showed the
Netherlands' centre-right Prime Minister Mark Rutte roundly saw
off a challenge by anti-Islam, anti-EU Geert Wilders in an
election on Wednesday, alleviating concerns towards Holland
opting to leave the EU.
"The euro's rise was an initial reaction to the Dutch exit
polls and the currency could rise further when the European
'mother market' comes into session later in the day," said
Masafumi Yamamoto, chief currency strategist at Mizuho
Securities in Tokyo.
"How much further support the euro can garner would depend
on how the Dutch vote could now impact the French presidential
elections, for example by eroding support for (Marine) Le Pen.
We could see the euro gain further if spreads between French and
German government bonds tighten today."
The pound was a shade lower at $1.2278 after
jumping 1.1 percent overnight. Sterling managed to pull away
from a two-month low of $1.2110 struck Tuesday on fears of
prolonged political jousting over Brexit terms.
The Swiss franc was steady after gaining about 1
percent against the dollar the previous day.
The Australian dollar was down 0.1 percent at $0.7702
following its overnight surge of 2 percent to a
three-week high of $0.7720.
(Editing by Randy Fabi)