Dollar falls to 7-week low after Fed minutes
The dollar fell to a seven-week low against a basket of major currencies on Thursday, after minutes from the Federal Reserve’s July meeting showed a bias among policymakers against raising interest rates soon.
The minutes, released on Wednesday, showed members of the rate-setting Federal Open Market Committee were generally upbeat about the U.S. economic outlook.
But policymakers believing a slowdown in the future pace of hiring would argue against a near-term hike outnumbered those who anticipated economic conditions would soon warrant tightening.
The minutes disappointed those who had bet the Fed could be turning more hawkish, after New York Fed chief William Dudley said on Tuesday it could possibly raise rates as soon as September.
The dollar index fell as low as 94.324, its weakest since June 24, in the European session, later edging back to 94.460 but still down 1.3 percent this week.
The euro was 0.25 percent higher at $1.1315 , having hit a seven-week high of $1.1332.
“The minutes paint a balanced picture and support the market’s view, according to which the likelihood of a small rate step by the end of the year is not even 50 percent,” said Antje Praefcke, currency strategist at Commerzbank. “The dollar will enter the weekend on a weak footing.”
