Investing.com - The dollar moved lower against a basket of other major currencies on Thursday after the minutes of the Federal Reserve’s latest meeting prompted investors to push back expectations on the timing of an initial rate hike.
The US dollar index, which tracks the greenback against a basket of six major rivals, was last down 0.25% to 96.19, after ending the previous session down 0.7%.
The minutes showed that Fed officials believe the economy is nearing the point where interest rates should move higher, but noted that the subdued inflation outlook inflation and weakness in the global economy could still pose risks to the U.S. economic outlook.
Data on Thursday showed that the number of Americans who filed for unemployment assistance rose by 4,000 to a seasonally adjusted 277,000 last week, but remained close to levels indicating that the labor market is strengthening.
EUR/USD rose 0.45% to 1.1167, after ending Wednesday’s session with gains of 0.89%.
The dollar pared back early gains against the yen, with USD/JPY up just 0.1% to 123.92, not far from Wednesday’s almost three-week lows of 123.68.
The Swiss franc was steady near three-week highs against the greenback at 0.9659.
The pound was slightly lower, with GBP/USD down 0.15% to 1.5657, holding below Tuesday’s seven-week peaks of 1.5716.
Sterling softened after data earlier on Thursday showing that UK retail sales rose less than expected in July sparked concerns over the outlook for consumer demand.
Demand for the pound continued to be supported by expectations for a rate hike by the Bank of England in the coming months.
The commodity linked currencies regained some ground as the dollar eased, but gains were held in check as low oil prices and ongoing concerns over slowing growth in China hit demand for riskier assets.
USD/CAD was down 0.32% to 1.3085, while NZD/USD rose to 0.6612.
The Australian dollar remained weaker; with AUD/USD down 0.48% to 0.7312 as falls in Chinese stocks overnight pressured the currency lower.