The dollar recovered on Thursday, having hit its lowest in more than two weeks as U.S. central bankers showed they were taking a more guarded view of inflation, helped by a steep fall in the British pound.
Asian stocks climbed to their highest in a decade, powering global shares to another record high and keeping them on course for their longest winning streak ever. Wall Street was set to open down from Wednesday’s record high ESc1.
The dollar’s dip came after minutes of the Federal Reserve’s September meeting on Wednesday showed policymakers had a prolonged debate about whether inflation would pick up and the path of future interest rate rises if it did not.
But it slowly regained ground on Thursday and the pound tumbled after the European Union’s chief negotiator said talks over Britain’s exit from the EU were at an impasse [GBP/].
“The minutes highlighted Fed officials are growing concerned low inflation might reflect more than transitory factors,” RBC’s global macro strategist Peter Schaffrik said.