US dollar declines amid Fed minutes

New York, Jan 5 (IANS) The US dollar fell against other major currencies on Wednesday as investors were digesting the latest Federal Reserve minutes.

In late New York trading, the euro rose to $1.0463 from $1.0410, and the British pound climbed to $1.2309 from $1.2235, Xinhua news agency reported.

The Australian dollar increased to $0.7264 from $0.7222.

The dollar bought 117.56 Japanese yen, lower than 117.65 yen in the previous session. The dollar fell to 1.0232 Swiss francs from 1.0275 Swiss francs, and it edged down to 1.3317 Canadian dollars from 1.3432 Canadian dollars.

According to the minutes of the Fed’s December meeting released Wednesday, almost all the participants “indicated that the upside risks to their forecasts for economic growth had increased as a result of prospects for more expansionary fiscal policies in coming years.”

Meanwhile, most Fed officials reiterated that a “gradual” pace of rate hikes over the coming years would likely remain appropriate.

The Fed raised interest rates at its December meeting for just the second time in a decade and forecast three rate hikes for 2017.

The dollar index, which tracks the greenback against six major peers, was down 0.48 per cent at 102.710 in late trading on Wednesday.