US$ slips from 7-mth high; markets await Fed minutes

London

THE dollar slipped from a seven-month high against a basket of currencies on Wednesday as markets awaited minutes of the Federal Reserve's recent policy meeting which could reinforce expectations of a rate hike next month.

But with the Fed likely to flag concerns about the currency's recent strength, there were signs of wariness building in the long dollar trade. "It will be a case of range-trading going into the Fed minutes. We could see some positions being pared, with the dollar having risen in the past few weeks," said Jeremy Stretch, head of currency strategy at CIBC World Markets.