Forex – Dollar Dips, but Fed Minutes Keep Rate Hikes on the Table

0 – The dollar eased from one-and-a-half week highs against a currency basket on Thursday, but remained supported as the minutes from the Federal Reserve’s September meeting indicated that it plans to push ahead with rate hikes in the coming months.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, dipped to 95.31 by 03:58 AM ET (07:58 AM GMT) after rising 0.63% in the previous session.

The minutes indicated that Fed policymakers were united on the September rate hike and generally anticipated that further gradual rate hikes would be needed to prevent the economy from overheating, with some talking of pushing borrowing costs into restrictive territory.

The minutes made no mention of President Donald Trump’s recent criticism over the pace of rate hikes, but noted that Trump’s tax cuts could make the economy run too hot while and his trade war with China could hit economic growth.

On Tuesday, Trump said the Fed was his “biggest threat” because it was raising rates too quickly.

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