Anna 
The U.S. dollar relinquished some of its gains from the previous session on Thursday, yet remained close to a one-week high after the release of hawkish minutes from the latest Federal Reserve meeting, indicating that U.S. interest rates would remain elevated for the foreseeable future.
At 08:20 GMT, the Dollar Index, gauging the greenback against a basket of six other major currencies, edged 0.1% lower to 104.705, following a 0.3% rise overnight.
The release of the Fed’s late-April meeting minutes underscored policymakers’ mounting concerns over persistent inflation, prompting discussions among some officials about the prospect of further rate hikes to counteract inflationary pressures.
According to ING, “While the general view was that policy was ‘well positioned,’ many members were open to more hikes if needed. Incidentally, ‘many’ participants questioned whether policy was restrictive enough.”
Subsequent speeches by several Fed officials have emphasized their concerns regarding inflation levels, reinforcing the cautious stance taken by the central bank.
Despite the hawkish tone, the Fed is perceived as unlikely to enact further interest rate hikes. Consequently, markets are now pricing in a higher probability that the central bank will maintain elevated interest rates for an extended period.
Later in the session, Atlanta Fed Chair Raphael Bostic’s remarks, along with manufacturing activity data for May, will be closely scrutinized by traders for additional insights into the Fed’s policy outlook.
