Dollar holds losses as markets await Fed minutes, speakers

Business Recorder reported that the US dollar held its losses on Wednesday as traders awaited the Federal Reserve minutes from its September 15 and 16 policy meeting, along with speeches by several policymakers. The dollar index gained 0.03%, reaching 101.94, after a 0.27% decline in the previous session, while the euro lost 0.08%, trading at $1.1249. Against the greenback, the yen slipped 0.19% to 158.43 per dollar.

Fed officials sound less hawkish after softer personal consumption and jobs data last week, National Australia Bank strategist Gavin Friend said. CME FedWatch data show a 20.5% chance of a rise of 25 basis points or more in October, down from about 51% a week earlier, while the December meeting carries an 84.5% probability of an increase.

A day earlier, the euro posted its biggest rise in seven weeks as French bond yields dropped after the leading candidate for next spring's presidential election proposed deeper spending cuts. Bank of Japan policymaker Ayano Sato, meanwhile, backed raising interest rates in several stages, and the central bank may signal this month that underlying inflation is near its 2% target.