t gained further support as the minutes from the Fed’s Dec. 12-13 meeting were more hawkish than anticipated, indicating the central bank is still poised to raise interest rates several times this year.
Fed policymakers acknowledged the U.S. labour market’s solid gains and the expansion in economic activity, even as they affirmed worries about persistently low inflation.
That suggested the central bank will continue to pursue a gradual approach in raising rates but could hasten the pace if inflation accelerates.
“The dollar did feel downward pressure at the turn of the year, but the selling was not based on very strong factors,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities in Tokyo.