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10.12.2017 / 07:18

Release of Minutes From the Federal Reserve Meeting

The U.S. dollar was weaker versus major rivals on Wednesday after the release of minutes from the latest Federal Reserve meeting showed consensus gelling around one more rate increase this year but tempered by concerns about sluggish inflation. The Federal Open Market Committee’s meeting notes showed that the low inflation environment continues to weigh on central bank officials’ minds. Some added that patience was warranted in raising rates to keep an eye on inflation numbers, while others contended that delaying hikes could lead to asset bubbles.

The persistence of low inflation had more Federal Reserve officials wondering whether an interest rate was needed in December, according to minutes of the Federal Reserve’s last policy meeting released Wednesday. Several Fed officials said that they now believed it would be longer than they had previously thought to get inflation back to the central bank’s 2% target. As a result, many noted that “some patience” was warranted in hiking interest rates in order to assess trends in inflation, the minutes said. Whether or not to raise interest rates again this year, given the slowdown in inflation, has been a hotly debated by Fed officials since the Sept. 20 meeting.

Earlier in the session, U.S. job openings for August read 6.08 million, down from 6.2 million in the previous month. The ICE U.S. dollar index was 0.4% lower at 92.939, putting it on to decline for four straight sessions. The euro rose to $1.1869 from $1.1808 on Tuesday, hanging on to gains logged in Tuesday’s session after fears of a Catalonia secession declaration eased. This marks the euro’s highest level since Sept. 22. The pound was up to $1.3232 from $1.3204 on Tuesday as traders continued to assessed the lack of progress in Brexit talks ahead of a key summit of European leaders next week. In Japan, the yen advanced, with the dollar buying ¥112.38, compared with ¥112.45 on Tuesday.