USA dollar slides amid Fed minutes

USA dollar slides amid Fed minutes

The Australian dollar increased to $0.7785 from $0.7783.

The Labor Department said on Friday its Consumer Price Index jumped 0.5 percent last month after advancing 0.4 percent in August.

The dollar index, which measures the greenback against six major peers, was down 0.30 per cent at 93.008 in late trading.

Minutes of the Fed's September 19-20 meeting published on Wednesday showed policymakers had a prolonged debate about the prospects of a pickup in inflation and slowing the path of future interest rate rises if it did not.

"There are some encouraging nascent signs that there are building inflationary pressures, but with respect to looking at data points, we must acknowledge that these will be noisy data series", Northey said, referring the effects of Hurricanes Harvey and Irma which battered USA cities in recent weeks. St. Louis Fed President James Bullard told Business Insider that there was "no hurry to raise rates" with inflation below target.

The dollar was slightly lower on the day against its Japanese counterpart at 112.25 yen, on track for a modest weekly fall of 0.3 percent. Financial markets have priced in a roughly 88 percent chance of a rate hike in December, according to CME Group's FedWatch tool.

Federal Reserve officials disagreed Thursday about the need for more interest rate hikes.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, fell 1 basis point to 2.83 percent, the yield on the 15-year note also slid 1 basis point to 3.11 percent and the yield on short-term 2-year traded flat at 1.95 percent by 03:05GMT.

While the Fed's policy is still uncertain and while investors are hopeful of a hawkish policy change, the Bank of Japan has reported that they intend to maintain the current ultra-loose policy.

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