US dollar hovers near two-week lows ahead of CPI data

There was little change in the dollar, but it hovered near the lowest level in two weeks on Thursday, after the minutes of the last meeting of the Federal Reserve revealed that policymakers are taking a cautious stance, at a time when investors are awaiting key data on inflation in the United States.

The dollar index, which measures the performance of the US currency against six competing currencies, settled at 105.64, remaining near 105.55, its lowest level since September 25, which it touched yesterday, Wednesday.

According to the minutes of the Federal Reserve’s September 19-20 meeting released on Wednesday, US central bank officials cited uncertainty surrounding the economy, oil prices and financial markets as supporting “the perception of proceeding cautiously in determining the appropriate extent of further tightening of monetary policy.”

Federal Reserve officials indicated in their latest statements that the rise in bond yields is a factor that may allow them to end the cycle of raising interest rates.

US CPI data for September is due later on Thursday, which is expected to show inflation last month at a moderate level.

The yield on ten-year Treasury bonds fell 2.4 basis points to 4.573 percent. It reached its highest level since 2007 last week at 4.887 percent.

The euro rose 0.08 percent to $1.0628 after touching its highest level in more than two weeks on Wednesday.

The yen generally stabilized at 149.16 against the dollar, while the pound sterling recorded $1.2317 in the latest transactions.

The Australian dollar rose 0.09 percent to $0.6419, while the New Zealand dollar fell 0.09 percent to $0.6014.