* Fed not as hawkish as many anticipated, dollar hits 1-mth
* Euro up with Dutch PM expected to beat far-right rival
* BOJ stands pat on monetary policy, BoE and SNB next
* Downbeat local data temper Aussie and kiwi rally
(Updates prices, adds details and quotes)
By Shinichi Saoshiro
TOKYO, March 16 The euro stood tall on Thursday
after Dutch election exit polls pointed to a comfortable win by
the prime minister over his far-right rival, while the dollar
wallowed at a one-month low after the Federal Reserve sounded
less hawkish than anticipated on future rate rises.
The euro climbed to a five-week high of $1.0746 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 dollar index against a basket of major currencies was
down 0.2 percent at 100.560.
It slid more than 1 percent the previous day to touch
100.490, its lowest since Feb. 17.
The greenback took a knock after the Fed ended its two-day
policy meeting on Wednesday by increasing interest rates as
expected but stuck to projections of three total rate hikes in
Some traders had begin to suspect it would raise rates four
times this year as the economy builds up steam.
U.S. Treasury yields fell sharply in reaction to the Fed's
rate view for the rest of the year, 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
"Speculation of four rate hikes this year may have been
excessive. The dot plot was left mostly unchanged, shaking out
expectations among dollar bulls that had gone too far," said
Koji Fukaya, president of FPG Securities in Tokyo.
The "dot plot" reflects Fed policymakers' interest rate
The yen showed little reaction after the Bank of Japan stood
pat on monetary policy and kept the 10-year government bond
yield target of around zero percent, as the central bank's
decision was well anticipated.
The focus is now on BOJ Governor Haruhiko Kuroda's
post-meeting briefing at 0630 GMT for clues on the central
bank's stance on whether and when to pull back its massive
Hours after the Fed's rate hike, China's central bank on
Thursday raised short-term interest rates for the third time in
as many months, a day after the end of the annual session of
parliament where leaders warned that tackling debt risks would
be a top policy priority this year.
The Chinese yuan weakened to 6.87 per dollar, after
strengthening to 6.8455 after the Fed's policy decision.
The pound was 0.2 percent lower at $1.2267 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 Bank of England and the Swiss National Bank are due to
make policy decisions later in the day, with both central banks
expected to stand pat on monetary policy.
The Australian dollar gave back some its large gains made
the previous day against the slumping dollar, hit by
weaker-than-expected local employment data.
The Aussie was down 0.3 percent at $0.7687
following its overnight surge of 2 percent to a three-week high
The New Zealand dollar slipped 0.5 percent to $0.7006
after indicators showed the local economy expanded less
than forecast in the final quarter of 2016. The kiwi had risen
to a 12-day peak of $0.7050 the previous day.
(Editing by Randy Fabi and Kim Coghill)