U.S. Dollar Remains Lower Before Fed Minutes

A gauge of the dollar remained lower before the Federal Reserve releases minutes of its most recent meeting amid speculation an uneven economic recovery will prompt policy makers to hold borrowing costs near zero.

The greenback held losses from yesterday that came as Minneapolis Fed President Narayana Kocherlakota said inflation may run below the central bank’s target, while his Richmond counterpart Jeffrey Lacker tempered his previous expectation for more robust growth. China’s yuan rose to the strongest in three months as talks got underway with the U.S. and before a report forecast to show June’s trade surplus was the biggest since 2009. New Zealand’s dollar was 0.6 percent from a record high after Fitch Ratings raised the nation’s credit outlook.

The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major counterparts, was little changed at 1,006.44 as of 12:56 p.m. in Tokyo after falling 0.1 percent yesterday. The dollar was at 101.63 yen after losing 0.3 percent to 101.57 yesterday. It was unchanged at $1.3612 per euro.

Bloomberg

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