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Dollar slips after cautious Fed minutes

Dollar slips after cautious Fed minutes

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US central bank policymakers want to see proof the country’s economic slowdown is temporary before they raise interest rates, according to minutes of their latest meeting.

They said it would be “prudent to await additional evidence… that a recent slowdown in the pace of economic activity had been transitory”.

Markets had been expecting a rate rise at the Federal Reserve’s June meeting.

The dollar dipped following the release of the minutes.

It was down by nearly 0.2% against the Dollar Index, a basket of foreign currencies.

Most officials on the Federal Open Market Committee of rate setters still expect to raise interest rates “soon”.

Gus Faucher, an economist at Pennsylvania-based PNC Financial Services, said he was surprised to see the dollar fall.

He thinks new reports since the meeting, including jobs, bolster the case for a rate rise. He’s calling for a June increase and a second one by the end of the year.

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