Cautious Fed pins US dollar to 2-week low; euro rises

London

THE dollar struggled near a two-week low on Thursday as minutes of the last US Federal Reserve meeting raised expectations that future interest rate increases would be limited after policymakers revealed a more cautious outlook towards inflation.

"It is no longer about the timing of the next rate hike or about the subsequent ones but about what the terminal rate for the US Federal Reserve would be and that expectation is becoming lower by the day," said Edward Hardy, a corporate market analyst at Worldfirst, an FX consultancy, in London.