U.S. Dollar 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 versus most major peers after Minneapolis Fed President Narayana Kocherlakota said inflation may run below the central bank’s target, while his Richmond counterpart Jeffrey Lacker curbed his previous expectation for more robust growth. The pound was 0.4 percent from an almost two-year high versus the euro before the Bank of England meets tomorrow. New Zealand’s dollar traded 0.6 percent from a record high after Fitch Ratings raised the nation’s credit outlook.

“So far, Fed members this week have sounded more dovish and created some uncertainty in the market heading into the minutes,” said Stan Shamu, a market strategist at IG Ltd. “The market will be cautious on the dollar before the minutes though we may see a bit of a bounce after the release.”


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