The dollar slipped lower against other major currencies on Wednesday, as investors turned to the minutes of the Federal Reserve’s latest meeting, due later in the day, although sustained hopes for a 2016 U.S. rate hike kept the greenback near seven-month highs.
EUR/USD edged down 0.10% to 1.1043, the lowest since July 27.
Market participants were waiting for the minutes of the Fed’s September policy meeting for hints on the central bank’s future policy moves.
Demand for the U.S. dollar still remained supported, as the odds for a December rate hike passed the 70% threshold on Tuesday.
GBP/USD jumped 1.25% to trade at 1.2275, bouncing off the multi-decade lows reached in recent sessions amid growing ‘hard Brexit’ concerns for Britain.
The pound was boosted by reports British Prime Minister Theresa May has accepted that Parliament should be allowed to vote on her Brexit plan.
USD/JPY edged up 0.12% to 103.63 after Bank of Japan Governor Haruhiko Kuroda reiterated to Japan’s parliament on Wednesday that he remains ready to cut interest rates or expand asset buying if needed.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.11% at 97.60, just off Tuesday’s seven-month peak of 97.75.