* Trump offers no fresh details on stimulus
* Dollar ticks up as Fed comments spark March rate hike
* Limited reaction to China surveys
By Hideyuki Sano and Yuzuha Oka
TOKYO, March 1 The dollar ticked up on Wednesday
as Federal Reserve policy-setters fanned expectations of a rate
hike this month, while U.S. President Donald Trump offered
Congress little details on his stimulus as some investors had
The greenback extended gains against the yen, last up 0.6
percent at 113.48 yen. The euro dropped 0.2 percent
against the dollar to $1.0555.
The dollar index, which measures the greenback against a
basket of six major peers, was last up 0.2 percent at
In a long-awaited speech to Congress, Trump opened the door
to a broad overhaul of the U.S. immigration system and vowed to
pursue massive tax relief for the middle class but stopped short
of giving details.
"There was no mention of the size and the schedule of his
tax cuts and spending. He just repeated what he had said," said
Daisuke Uno, chief strategist at Sumitomo Mitsui Bank.
"So the dollar would have been sold on disappointment but in
reality a barrage of comments from the Fed this morning
overwhelmed that," he added.
Earlier, the U.S currency had risen after a handful of
Federal Reserve policymakers boosted expectations for a March
interest rate increase.
New York Fed President William Dudley, among the most
influential U.S. central bankers, said that the case for
tightening monetary policy "has become a lot more compelling".
John Williams, President of the San Francisco Fed, said that
a rate increase was very much on the table for serious
consideration at the March meeting given full employment and
Money market futures were now pricing in about
a 70 percent chance of a rate hike in March, compared to about a
30 percent or less at the start of the week.
"Before Trump's speech, investors were reluctant to fully
price in the increased possibilities of a March rate hike. But
now that it's over without turbulence, the dollar is extending
its rally," said Kumiko Ishikawa, FX market analyst at Sony
U.S. Treasury yields ticked up with a boosted prospect for a
March rate hike. Benchmark U.S. 10-year Treasury note yields
last stood at 2.422 percent, up from 2.358 percent
"The widening interest rate differential between the U.S.
and Japan helped the dollar versus the yen," said Junya Tanase,
chief currency strategist at JPMorgan Chase Bank.
U.S. economic data released on Tuesday showed a moderate
growth path, as the economy expanded at a slower pace in the
fourth quarter, in line with last month's estimate.
The Mexican peso, seen as the most vulnerable to Trump's
protectionist policies and harsh rhetoric, also took his speech
in stride. The peso was little changed at 20.097 per dollar
Some analysts said Trump's speech, while lacking details on
economic policies, did seem positive after a turbulent month in
"Today was 'good Trump' compared to the aggressive 'bad
Trump' shown on Twitter," said Ayako Sera, market strategist at
Sumitomo Mitsui Trust Bank.
Currency markets for export-reliant economies largely
shrugged off data showing China's factory activity had expanded
at a faster rate than expected in February.
The dollar in Australia, where China is its biggest export
market, steadied at $0.7668.
Meanwhile, the New Zealand dollar nursed some losses to a
stronger dollar. The Kiwi was last down 0.8 percent at $0.7134
(Reporting by Yuzuha Oka; Editing by Richard Pullin and Randy