The US dollar remained close to an 18-month high against major currencies on Thursday as investors digested minutes from the Federal Reserve’s latest meeting, which showed policymakers remained concerned about persistent inflation.
The dollar index, which tracks the greenback against six major currencies, was little changed at 102.23 in early Asian trading after gaining 0.3% in the previous session. The index remained just below levels last seen in April 2025, when financial markets were unsettled by the US administration’s announcement of new tariffs.
Minutes from the Federal Open Market Committee’s September 15-16 meeting showed that policymakers unanimously backed a 25-basis-point interest rate increase. However, the discussions revealed some differences among officials over the reasons for the move and the appropriate direction of monetary policy.
Analysts at Westpac said the minutes maintained a hawkish tone, noting that most Fed officials continued to see a case for further tightening while nearly all participants considered inflation risks to be tilted to the upside at the time of the meeting.
Despite the hawkish message, the minutes did not significantly alter market expectations for the Fed’s next meeting later this month. According to CME Group’s FedWatch tool, traders were pricing in a 19% chance of another 25-basis-point rate increase at the meeting ending on October 28, unchanged from the previous day.
Against the Japanese yen, the dollar eased 0.2% to 157.815 yen. The move came after data showed Japan recorded a current account surplus of 4.062 trillion yen ($25.7 billion) in August, exceeding economists’ median forecast of 3.19 trillion yen.
The Australian dollar was steady at $0.6960, while the New Zealand dollar was also little changed at $0.5600.
In offshore trading, the US dollar remained flat against the Chinese yuan at 6.7015 yuan.
The euro held at around $1.1201, while the British pound was unchanged at $1.3215.
In cryptocurrency markets, Bitcoin slipped 0.2% to $83,233.40, while Ether edged down 0.1% to $2,571.07.
