SINGAPORE, July 6 Reuters The dollar edged higher on Thursday after minutes from the U.S. Federal Reserve39;s latest policy meeting firmed bets for a rate hike this month, while a broad riskoff mood in Asia lent some support to the Japanese yen.
Minutes of the Fed39;s June meeting released on Wednesday showed that the vast majority of policymakers expect further tightening in U.S. monetary policy, even as they agreed to hold interest rates steady last month.
That sent the dollar slightly higher alongside Treasury yields while stocks slumped, as expectations grew that the Fed will resume its ratehike campaign this month and that rates would stay higher for longer in order to tame inflation.
The euro was last 0.09 lower at 1.0843, while sterling dipped slightly to 1.02702.
The U.S. dollar index gained 0.02 to 103.36.
The FOMC minutes seemed hawkish with some committee members favouring a rate hike, though none voted for one at the end, said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.
It heightened the impression that the June pause was an interim one.
Markets are now pricing in an 89 chance that the Fed will raise rates by 25 basis points at its policy meeting later this month, according to the CME FedWatch tool.
The yen, however, jumped more than 0.5 against the dollar to 143.86 , as concerns about the global growth outlook, resulting from the aggressive monetary tightening cycles by major central banks, weighed on risk appetite.
The Japanese…