Dollar edges back from 18-month high after FOMC minutes

Business Recorder reported that the dollar stayed close to its strongest level in around 18 months during a quiet Asian session on Thursday. The dollar index was unchanged at 102.23 after a 0.3% gain on Wednesday. The currency sat only a few pips below its highest point since April 9, 2025, a period that followed market turmoil linked to the Liberation Day tariffs.

Minutes from the Federal Open Market Committee, released on Wednesday, carried a hawkish tone and showed policymakers regarded inflation as the largest danger to their outlook. The Fed had voted unanimously to lift rates by a quarter point at its September 15 and 16 meeting, yet the minutes revealed disagreement over the reasoning. Westpac analysts said the record reinforced the hawkish stance, noting that a majority of officials still saw more tightening as suitable and nearly all judged inflation risks to lean upward at the time.

Expectations for the Fed's next move changed little, as futures implied a 19% probability of a 25-basis-point hike at the meeting ending October 28, based on CME Group data. Against the yen, the greenback fell 0.2% to 157.815 after Japan posted a current account surplus of 4.062 trillion yen ($25.7 billion) for August, above the median economist estimate of 3.19 trillion yen. The euro, pound and Australian dollar were little changed, while bitcoin eased 0.2% to $83,233.40.