Fed minutes show policymakers see persistent inflation risks but remain divided on further rate hikes amid softer growth data.
The US Dollar Index (DXY) hovered near 101.00 on Wednesday as investors parsed the Federal Open Market Committee’s June meeting minutes. The document revealed unanimous agreement to hold rates steady but highlighted elevated inflation risks from AI-driven investment, tariffs, and Middle East tensions.
While a few policymakers suggested another rate hike could be warranted if inflation worsens, the overall tone leaned toward maintaining higher rates for longer. However, weaker US labor data and growth concerns limited the dollar’s upside.
The dollar showed mixed performance against major currencies, strengthening against the Japanese Yen but struggling to gain broader traction.