USD declined on the Fed's minutes
According to the Federal Reserve's minutes of Jan. 27-28 meeting, many FOMC members think that the interest rates should stay near 0 for a longer time period because of low inflation and other risks. The central bank wants to see signs of continuing economic growth and recovery in inflation before raising rates.
The Fed's members point out that wage growth in the US remains weak and this may cap consumer spending. American economy faces negative risks from China, Middle East, Ukraine and Greece. In addition, the regulator thinks that stronger US dollar will be constraining US net exports.
The minutes was more dovish than expected. As a result, US dollar declined vs. euro, yen, pound & other majors. EUR/USDroseto 1.1400. USD/JPYfellto 118.50. GBP/USDincreasedto 1.5480.