US: Dollar Steadies Ahead of FOMC Minutes.

The dollar index steadied around 99.6 on Wednesday after touching more than two-month lows earlier this week, as investors turned their attention to minutes from the Federal Reserve’s July meeting for fresh clues on the monetary policy outlook. The Fed left interest rates unchanged last month, although three officials dissented in favor of a rate hike, with traders looking for more details on the division within the central bank. Markets currently see a 65% chance that policymakers will keep rates unchanged in September following a string of weak US economic data, while expectations for a rate increase later this year have also faded. Investors will also watch Chairman Kevin Warsh’s remarks at the Fed’s annual Jackson Hole symposium later this month, where he could seek to reassure markets amid a global bond selloff. The 30-year US Treasury yield reached a 19-year high this week, while sovereign yields across other major economies also climbed to their highest levels in decades.