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Dollar falls to 3-week lows ahead of U.S. data, Fed minutes

Published 10/08/2015, 06:04 AM
Dollar weakens broadly as markets eye Fed meeting minutes
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Investing.com - The dollar fell to three-week lows against the other major currencies on Wednesday, as sentiment on the greenback remained vulnerable ahead of the release of U.S. jobless claims data and the minutes of the Federal Reserve's most recent policy meeting.

The dollar was lower against the yen, with USD/JPY down 0.23% at 119.72.

Market participants were eyeing the minutes of the Fed's latest policy meeting, due later in the day, for further indications on the central bank's next policy moves.

The dollar has been under pressure recently amid diminished expectations for a rate hike by the Fed this year in the wake of last Friday's unexpectedly weak U.S. jobs report for September.

Meanwhile, the yen's gains were held in check by expectations that the Bank of Japan could ease monetary policy as soon as its October meeting.

The BoJ kept monetary policy unchanged at its policy meeting on Wednesday but recent economic reports pointing to weakness in Japan’s economy have added to pressure on the bank to ramp up measures to bolster growth.

Data earlier on Thursday showed that Japan’s machinery orders unexpectedly fell in August, pointing to weakness in capital spending.

The dollar was also lower against the euro, with EUR/USD climbing 0.63% to 1.1308.

Elsewhere, the dollar was lower against the pound and the Swiss franc, with GBP/USD rising 0.21% to 1.5349 and with USD/CHF declining 0.72% to 0.9666.

Later Thursday, the Bank of England was expected to leave its benchmark interest rate at 0.50% and the level of its monthly asset purchases at £375 billion.

The Australian dollar was weaker, with AUD/USD shedding 0.23% to 0.7191, while NZD/USD held steady at 0.6613.

Meanwhile, USD/CAD slid 0.23% to trade at 1.3027.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.48% at 95.19, the lowest level since September 21.

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