Dollar slips to year's low; All eyes on Fed

The US currency fell to its lowest level so far this year as investors turn cautious ahead of Federal Reserve minutes due later in the global day. The dollar index is trading below 102 mark on Wednesday morning in Asia as investor await further cues from the Federal Reserve for clarity on timing and magnitude of interest rate cut. The latest Fed minutes will be released later today while Fed Chair Jerome Powell will speak at the Jackson Hole symposium on Friday. Meanwhile, Federal Reserve Governor Michelle Bowman said Tuesday she remains cautious on interest rate cuts and warned against overreacting to recent data showing easing inflation as upside risks remain a threat. If there is further progress on inflation, however, showing that price pressures are slowing toward the 2% target, Bowman added, that it would "become appropriate to gradually lower the federal funds rate to prevent monetary policy from becoming overly restrictive on economic activity and employment."

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