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The US dollar was steady on Wednesday as investors tempered their risk appetites ahead of the release of minutes of the Federal Reserve’s policy meeting that could offer clues on the outlook for inflation and interest rates.

The dollar index, which measures the greenback against six major peers, was last up 0.056% at 107.130, having slipped 0.65% overnight.The dollar index, which measures the greenback against six major peers, was last up 0.056% at 107.130, having slipped 0.65% overnight.

The dollar index, which measures the greenback against six major peers, was last up 0.056% at 107.130, having slipped 0.65% overnight. Fed Chair Jerome Powell said this month that, while borrowing costs would need to rise further, the central bank might raise interest rates in smaller increments in the future.

The central bank said the cash rate needed to reach a higher level earlier than previously indicated to tame inflation. It also increased the projected peak for the cash rate to 5.5% in September 2023.Meanwhile, China tightened restrictions in some cities due to a spike in COVID-19 cases.

 

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