The US Dollar traded lower against major currencies on Wednesday as investors awaited the release of the Federal Open Market Committee (FOMC) minutes from the July policy meeting, scheduled for 18:00 GMT, according to FX Street.
Despite the recent dip, ING’s Chris Turner highlighted that the Dollar continues to find support from elevated energy prices and strong long-term US Treasury yields. However, FX volatility remains subdued, which is encouraging carry trades in the market.
For Japanese investors, the softer US Dollar could influence cross-currency strategies, especially in USD/JPY pairs, as the market anticipates potential signals from the FOMC minutes regarding future monetary policy direction.