Dollar Declines as FOMC Minutes Reiterate Data Dependency
- Market-priced odds for a December rate hike remain near 75%
- Spanish PM offers Catalonia five days to clarify situation
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The dollar dropped toward its daily low after the Federal Reserve’s September meeting minutes revealed that while many Fed officials see another rate hike this year as warranted, many are also concerned that recent low inflation readings might not be completely transitory.
The Bloomberg Dollar Spot Index was down more than 0.2 percent after choppy trading and modest moves followed the release of the minutes. The dollar saw daily declines versus all of its G-10 peers, led by losses versus the euro. The market may see more actionable data Thursday with the release of producer prices and Friday, when consumer inflation and retail sales data will be published.