Dollar steadies after Fed minutes as markets await more central bank cues
The dollar steadied against its peers early on Thursday after the Federal Reserve's policy meeting minutes took the wind out of its advance, with the market awaiting comments by central bankers and U.S. data for its next cues.
The dollar was little changed at 113.240 yen
The euro inched down 0.1 percent to $1.1339
The greenback had rallied earlier in the week after upbeat U.S. economic indicators lifted Treasury yields to multi-week highs.
But its advance stalled after the Fed's minutes on its June 13-14 policy meeting released on Wednesday showed a rift among policymakers over the pace of future U.S. rate increases and disappointed some dollar bulls.
"Overall, the Fed's meeting minutes sounded hawkish in my view, as the possibility was mentioned for the reduction of its balance sheet in the near-term. But the dollar still slipped, showing that it has become top-heavy," said Masafumi Yamamoto, chief forex strategist at Mizuho Securities in Tokyo.
"The market has gotten used to the dollar strengthening this week. So even if upcoming indicators like the U.S. ISM report are in line with expectations, the dollar may drop on disappointment. The currency may need a strong upside data surprise to move further up."
U.S. data on tap later in the day include the ADP employment report, ISM non-manufacturing PMI and the initial jobless claims.
Investors will also look to comments from San Francisco Fed President John Williams and Fed Board Governor Jerome Powell for their potential impact on U.S. yields.
For the euro and European bond markets, markets await the European Central Bank's June policy meeting minutes due later on Thursday. ECB executive board member Peter Praet is also scheduled to take part in a conference in Paris.
The Australian dollar was 0.15 percent lower at $0.7591