United States Dollar Index slumps in countdown to FOMC minutes
The US Dollar (USD) trades lower against its major currency peers on Wednesday ahead of the Federal Open Market Committee (FOMC) minutes of the July policy meeting, which will be published at 18:00 GMT.
On Wednesday, the US Dollar (USD) experienced a decline against its major currency peers, with the US Dollar Index (DXY) falling 0.2% to around 99.45, near its two-month low of 99.29 observed on Monday. The US Dollar was the weakest against the Japanese Yen. The Federal Open Market Committee (FOMC) minutes from the July policy meeting, scheduled for publication at 18:00 GMT, are expected to have a limited impact on Federal Reserve (Fed) interest rate expectations due to Chairman Kevin Warsh's commitment to its "no forward guidance" policy.
The Fed decided to keep interest rates unchanged in the range of 3.50%-3.75% and cited potential upside inflation risks. Analysts at ING believe that the FOMC minutes will not be a major factor in shaping the US Dollar's outlook, as market attention is primarily focused on the release of the FOMC minutes for the July meeting.
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