US dollar slides amid Fed minutes

The US dollar continued to decline against most major currencies as investors mainly digested the newly-released minutes from US Federal Reserve.

In late New York trading on Wednesday, the euro increased to $1.1856 from $1.1807 in the previous session, and the British pound increased to $1.3218 from $1.3204 in the previous session, Xinhua news agency reported.

The Australian dollar increased to $0.7785 from $0.7783.

The dollar bought 112.35 Japanese yen, higher than 112.31 yen of the previous session.

The US dollar lost to 0.9728 Swiss franc from 0.9751 Swiss franc, and it was down to 1.2492 Canadian dollars from 1.2510 Canadian dollars.

"Many participants continued to believe that the cyclical pressures associated with a tightening labor market or an economy operating above its potential were likely to show through to higher inflation over the medium term," according to the minutes on Wednesday.

In addition, many Fed officials judged that at least part of the softening in inflation this year was the result of idiosyncratic or one-time factors, and, thus, their effects were likely to fade over time.

However, other developments, such as the effects of earlier changes to government health-care programs that had been holding down health-care costs, might continue to do so for some time.

Analysts said the minutes showed that policymakers are open to a December interest-rate hike despite concerns about low inflation levels.

The dollar index, which measures the greenback against six major peers, was down 0.30 per cent at 93.008 in late trading.

--IANS

pgh/