Dollar continues recovery ahead of Federal Reserve minutes

The US dollar rose against a basket of global currencies on Wednesday, to continue its recovery for the second straight day from a 2-week low, amid tensions between the US and China, while investors await the release of the US Fed meeting minutes later today, which provide insights on prospects for the US monetary policy and future rate cuts.

The dollar index rose by 0.2% to 98.04 points, after opening at 97.85, and hit an intraday low of 97.85.

The US dollar rose by less than 0.1% yesterday, its first daily gain in the last 4 days, in its recovery attempts from a 2-week low of 97.68 points hit in the previous day.

President Donald Trump threatened on Tuesday to increase the tariffs against China if the ongoing trade talks failed.

Whilst, the Chinese Foreign Ministry today condemned the US interference after the Senate unanimously passed a bill to support pro-democracy protesters in Hong Kong.

At 19:00 GMT the US Federal Reserve will release the minutes of its October's meeting, which saw the third US rate cut during this year by 25 points to around 1.75%.

The meeting minutes provide more details and insights on prospects for the US monetary policy approach and future rate cut for the fourth time this year, which may come in the Fed's efforts to counter the US economic slowdown risks.