The Australian dollar went up to 0.7690 dollars from 0.7647 dollars.
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The minutes came a day after William Dudley, president of the New York Federal Reserve bank, said “it’s possible” to raise interest rates at the Fed’s September policy meeting.
Comments from Dudley, a permanent voter on policy and a close ally of Fed Chair Janet Yellen, also included an unusual warning on low bond yields and were seen as more hawkish than a cautious message last month.
Dudley’s comments were similar to those of Atlanta Fed President Dennis Lockhart on Tuesday.
That means, if economic data – especially those related to job gains, industrial production and wage gain – remains robust, possibilities of a rate hike may increase by the end of this year.
Seventeen Fed policymakers participated in the July meeting, 10 of whom had a vote. Benchmark copper on the London Metal Exchange CMCU3 was up 0.25 per cent at $4,786 a ton after losing 0.8 percent on Wednesday.
“There’s some level of momentum that’s been built into dollar weakness this year, tied to Fed expectations”, said Phillip Nelson, Boston-based director of asset allocation at NEPC LLC, a consultant that advises corporations, pension funds and endowments managing US$925 billion (RM3.6 trillion). Reports showed the number of Americans filing for unemployment benefits fell more than expected last week, while manufacturing activity in the U.S. Mid-Atlantic region saw a mild improvement this month. United Kingdom retail sales data due at 0830 GMT is expected to show a 0.2 percent rise in July after a sharp fall in June.
In currency markets, the dollar was down 0.5 per cent at 99.71 yen earing a post-Brexit low of 99.55 hit on Tuesday.
In late NY trading, the euro rose to 1.1354 dollars from 1.1291 dollars of the previous session, and the British pound climbed to 1.3152 dollars from 1.3056 dollars.
A break there would open the way for the yen to test its 2-1/2 year high of 99.00 to the dollar touched on June 24 in the wake of Britain’s European Union referendum results. “The U.S. wants a cheaper dollar and so does China, leaving the yen taking the brunt”, said Daisuke Uno, chief strategist at Sumitomo Mitsui Bank.
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Leading indicators are seen growing 0.3% in July, the same pace of growth than reported in June. The pound was at $1.3170, up from $1.3038. The CME Group’s FedWatch Tool indicates traders are pricing in a 82% probability the target will remain at 0.25% to 0.5% as of September 21, down just slightly from the 85% odds on Tuesday.
