Euro-dollar flat as Yellen reiterates cautious Fed view

The US dollar overcame early losses Wednesday to end flat against the euro while the yen slipped back as Janet Yellen underscored the Federal Reserve's cautious path forward.

At 2100 GMT the euro was at $1.3815, compared to $1.3813 late Tuesday. During the day it rose as high as $1.3851 before succumbing to selling.

Helping the dollar's rebound was confident talk from the Federal Reserve on growth slowly picking up after a harsh winter.

The Fed's Beige Book regional report said most areas of the country were growing at a "modest or moderate" pace and credited the weather for much of the first quarter slowdown.

Separately, at the economic Club of New York, Fed Chair Yellen said the Fed saw the continued need for ultra-low rates well into next year and saw no threat from inflation, a reiteration of previous policy statements which affirmed the central bank's cautious optimism on growth.

"The initial dovish rhetoric was balanced out with some discussion about when they actually would raise interest rates, of which mid-2015 seems to be the consensus," Forex.com's Neil Gilbert said of Yellen's speech.

"If anyone was looking for anything substantial, they were sorely disappointed as Yellen gave no more hints about much of anything."

The yen fell but analysts said it immediately triggered buying, limiting the losses.

The dollar was at 102.25 yen, up from 101.94 Tuesday.

The euro rose to 141.28 yen from 140.80.

The British pound gained to $1.6795 from $1.6726 after the British unemployment rate fell below 7.0 percent, a five year low that comes as the country's economic recovery gains pace.

"The UK labor market is improving and improving fast," said Daniel Vernazza, economist at UniCredit Research.

"Employment rose a stellar 239,000 in the three months through February when compared to the three months to November."

The dollar meanwhile rose to 0.8818 Swiss franc from 0.8802 franc.