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Forex - Dollar remains broadly lower after Fed minutes

Published 08/20/2015, 03:42 AM
© Reuters.  Dollar on the defensive after Fed minutes delay expectations for September rate hike
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Investing.com - The dollar remained broadly lower against a basket of other major currencies on Thursday after July’s Federal Reserve meeting minutes indicated that there was little consensus on when to start raising interest rates.

The US dollar index, which tracks the greenback against a basket of six major rivals, was last at 96.49, little changed for the day after tumbling 0.7% in the previous session.

The minutes showed that Fed officials believe the economy is nearing the point where interest rates should move higher, but noted that the subdued inflation outlook inflation and weakness in the global economy could still pose risks to the U.S. economic outlook.

Data earlier on Wednesday showed that the U.S. consumer price index ticked up just 0.1% in July.

Underlying inflation, which excludes food and energy costs, also rose 0.1%. Both figures were below economists’ expectations for a 0.2% increase.

EUR/USD was steady at 1.1121, after ending Wednesday’s session with gains of 0.89%.

The dollar pushed higher against the yen, with USD/JPY advancing 0.2% to 124.04, off Wednesday’s almost three-week lows of 123.68.

The pound was steady near seven-week highs, with GBP/USD at 1.5672. Sterling continued to be supported by expectations for a rate hike by the Bank of England in the coming months.

The commodity linked currencies remained under pressure as low oil prices and ongoing concerns over slowing growth in China weighed.

USD/CAD was up 0.12% to 1.3140, while NZD/USD was at 0.6603.

The Australian dollar was down 0.59% to 0.7304, off overnight highs of 0.7373 as falls in Chinese stocks pressured the currency lower.

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