Dollar extends losses as Fed minutes hint at dovish sentiment
The U.S. dollar extended its losses on Wednesday after the Federal Reserve released the minutes from its December meeting at which it raised interest rates by 25 basis points. According to the minutes, some central bank officials would have favored pausing the on-going rate hikes last month, while "many" said the Fed could be "patient" about further rate increases. The central bank’s median expectations for rate hikes in 2019 have already come down from three to two. The dollar, which enjoyed a steady boost from the rising interest rates in the U.S. is grappling with losing its support and slipped to a three-month low on Wednesday. The ICE U.S. Dollar Index DXY, -0.76% which measures the buck against six rivals, was last down 0.7% at 95.205, having touched its lowest level in the session following the minutes.
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