By Samuel Indyk
LONDONNov 24 – The dollar fell again on Thursday, after the minutes of the Federal Reserve’s November meeting supported the view that the central bank will slow the pace of interest rate hikes starting at its meeting in November. december.
* Long-awaited minutes from the November 1-2 meeting showed officials are pleased with the prospect of being able to move in smaller steps, with a possible 50 basis point rate hike next month after four consecutive hikes. of 75 basis points.
* “The Fed will be happy to move rates by 50 basis points in December and by 25 basis points from the first meeting next year,” said Niels Christensen, chief analyst at Nordea, who said he still felt he needed to do more to lower inflation.
* The dollar index, which compares the greenback to a basket of six major currencies, was down 0.1% at 105.82, after falling 1.1% on Wednesday.
* The euro maintained gains after the European Central Bank’s October meeting report showed that policymakers fear inflation will take hold, justifying their prospects for further rate hikes.
* The euro was up 0.1% at $1.0408, while sterling was up 0.6% at $1.2122. The British currency had gained 1.4% on Wednesday, after preliminary data from British economic activity beat expectations, but still showed a contraction was underway.
* In China, rising coronavirus cases prompted cities across the country to impose more restrictions, heightening investor concern about the economy and curbing risk appetite.
* The yen was one of the currencies that appreciated the most against the dollar, with an improvement of 1%, to 138.10 units.