US$ drops as Sept rate hike chances fade

London

THE US dollar fell against a basket of major currencies on Thursday, with investors trimming bets in its favour after Federal Reserve minutes suggested that policymakers were in no hurry to raise interest rates.

Traders said that the probability of a September hike is now around 40 per cent, down from about 50 per cent towards the end of July, a factor that is likely to weigh on the US dollar in the near term. With volumes drying up over the summer holiday period, traders said that currency moves were likely to be exaggerated.