U.S. Dollar Lower As Fed Pause Hopes Rise

(RTTNews) - The U.S. dollar weakened against its most major counterparts in the European session on Wednesday amid a pullback in treasury yields, as dovish comments from Federal Reserve officials suggested that the U.S. central bank is unlikely to raise interest rates again in this cycle.

Atlanta Fed Bank President Raphael Bostic said on Tuesday the central bank need not raise borrowing costs any further.

Minneapolis Fed President Neel Kashkari made similar remarks and voiced his uncertainty about the impact of the recent increase in the 10-year Treasury yield.

Investors now look ahead to the release of minutes of the Fed's September policy meeting later in the day and U.S. inflation data due on Thursday for further clues on the interest rate path.

Inflation is expected to slow slightly to 3.6 percent in September from 3.7 percent in August.

The greenback fell to 1.2337 against the pound and 0.9001 against the franc, setting nearly 3-week lows. The greenback is poised to find support around 1.26 against the pound and 0.88 against the franc.

The greenback was down against the euro, at more than a 2-week low of 1.0634. If it drops further, it may find support around the 1.09 area.

The greenback eased to 1.3579 against the loonie, from an early high of 1.3612. Next key support for the currency is likely seen around the 1.32 level.

In contrast, the greenback climbed against the yen, touching a 2-day high of 149.16. On the upside, 152.5 is seen as its next resistance level.

The greenback edged up to 0.6401 against the aussie and 0.6008 against the kiwi, from an early 9-day low of 0.6445 and a fresh 2-month low of 0.6055, respectively. The currency is seen facing resistance around 0.62 against the aussie and 0.57 against the kiwi.