Investing.com - The dollar was slipped near two-week lows against the euro and a three-and-a-half week trough against the yen on Thursday as the dovish tone of the Federal Reserve's meeting minutes released on Wednesday dampened demand for the greenback.
EUR/USD hit 1.2759 during late Asian trade, the pair's highest since September 26; the pair subsequently consolidated at 1.2736, last up 0.01%.
The minutes of the Fed's September 16-17 policy meeting revealed a heated debate between board members, some saying that current language painted the wrong picture on the timing of rate hikes.
The report also showed that the U.S. central bank cut its growth outlook due to the higher dollar and concerns over global weakness.
The euro remained under pressure after data on Tuesday showing a steep decline in German factory orders in August added to concerns that the euro area’s largest economy being pulled into a recession.
The weak data added to expectations that the European Central Bank will implement fresh stimulus measures to help bolster growth.
The dollar also slipped lower against the yen, with USD/JPY down 0.20% to 107.87.
The yen found support earlier in the week, after Japanese Prime Minister Shinzo Abe voiced concerns over the impact of a weaker yen on the economy.
The Bank of Japan left monetary policy unchanged at its policy meeting on Tuesday, but acknowledged that declining domestic demand as a result of a sales tax increase in April was leading to economic weakness.