By Swati Pandey
SYDNEY, Oct 12 (Reuters) – The Australian and New Zealand dollars rose on Thursday as the greenback stumbled to two-week lows after minutes of the U.S. Federal Reserve meeting showed many officials expressed concerns that soft inflation might not be transitory.
The worries about stubbornly weak consumer prices put a question mark over the pace of future rate increases in the world’s biggest economy.
That led to some selling pressure in the dollar and sent its Australian counterpart to a one-week top of $0.7813. The Aussie has risen 0.5 percent so far this week, after four straight weekly losses.
The New Zealand dollar climbed for a third straight session to a high of $0.7110 but was still within spitting distance of a more than four-month trough touched this week.
“Inglorious uncertainty has set in over the course of the Federal Reserve Board path to interest rate normalisation,” said Stephen Innes, head of trading for Asia-Pacific at OANDA.
“Given the uncertainties of Fed pricing and an arguably dovish FOMC minutes, it should underpin sentiment in the Australian Dollar”
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