The dollar slumped to a two-week low against a basket of currencies, after the release of the minutes of the Fed's latest policy meeting indicated that some U.S. central bank officials are still worried about the persistently weak inflation.
The Federal Reserve minutes showed majority of policymakers still perceive another rate hike to be this year as “likely to be warranted", but several underlined that additional tightening of the monetary policy would still be based on the upcoming inflation data.
According to the minutes, many FOMC members voiced their worries that the low inflation readings this year might show the influence of events that could prove to be more persistent.
The dollar index weakened to as low as 92.839, its lowest level since September 26. It last traded down 0.2 percent at 92. 877.
Versus the yen, the dollar 0.1 percent to 112.38 yen, but continued to be above the intraday low of 112.08 yen on Wednesday.
The U.S. producer price data and consumer price data scheduled to be released on Thursday and Friday respectively, will be the next focus of the markets.
The material has been provided by InstaForex Company – www.instaforex.com