The U.S. dollar hit a seven-week low against a basket of major currencies on Thursday, following the release of the minutes from the Federal Reserve's July meeting which indicated that there were more policy committee members opposed to a near-term rate hike than those who were in favor of one.
The minutes were released on Wednesday afternoon and showed an increased likelihood of a rate hike in December, rather than September, if there is to be one at all in 2016. Nevertheless, following the release of the minutes, the CME Group's FedWatch tool implied traders saw a 47 percent chance of a rate rise at its December meeting, down from 58 percent shortly before the release of the minutes.
The dollar's index against a basket of six major currencies touched a low of 94.385, its weakest level since June 24. The dollar index last stood at 94.627, having lost 1.1 percent so far this week.
Yen, Euro Up
The yen edged up 0.2 percent to 100.10 per dollar, rising as high as 99.645 at one point, nearing a seven-week peak of 99.55 to the dollar set on Tuesday.
According to Satoshi Okagawa, senior global markets analyst for Sumitomo Mitsui Banking Corporation Singapore, the dollar will probably trade in a 99 yen to 102 yen range for a while but “if the dollar breaks below 99 yen, the market will enter its next phase."
The euro hit a seven-week high of $1.13285 and last traded at $1.1301, up 0.1 percent on the day. Sterling held steady at $1.3043.