Dollar Slips Vs. Yen and Other Rivals on Dovish Fed Minutes

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By Jacob Maslow

The Dollar inched lower against the safe haven Yen on Thursday after the minutes of the American central bank’s January meeting revealed that policymakers are worried that a global economic slowdown could have a negative impact on the U.S. economy.

According to the minutes released on Wednesday, Federal Reserve officials discussed the possibility of changing the pace of rate hikes this year but decided against immediately acting on it, noting that any such move would be premature.

USD/JPY plunged 0.34% to trade at 113.70.

In Europe, the single currency gained against the greenback, with EUR/USD inching up 0.09% to 1.1136, but was weaker against the yen, with EUR/JPY declining 0.27% at 126.61.

With commodity linked currencies continuing to gain support, the Canadian dollar edged up against its American counterpart, with USD/CAD dropping to 1.3654.

The American dollar also lost against the Swiss franc, which tends to be very attractive to investors when they are avoiding risks.

Meanwhile, the Australian currency remained lower against the U.S. dollar as Australian data showed the unemployment rate in the country hitting a 4-month high in January.

AUD/USD closed at 0.7146 after plunging to its lowest level at 0.7134 in intraday trading following the release of the disappointing Australian jobs report.

The U.S. dollar index, which tracks the greenback’s position against a group of six trade-weighted currencies, declined to 96.79 on Thursday.

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