The dollar hovered just above 6-1/2-month lows on Wednesday, as investors' focus shifted from US politics to monetary policy ahead of the release of the minutes of the US Federal Reserve's meeting in early May. The dollar index, which tracks the greenback against six major rivals, was down 0.08 percent to 97.273. "The dollar has taken quite a beating over the last month," said Minh Trang, senior currency trader at Silicon Valley Bank in Santa Clara, California.
"You are seeing a little bit of calming down this morning as there is very little economic or headline news to really sway the market one way or other." Worries over US President Donald Trump's recent firing of FBI Director James Comey, who was overseeing a probe into possible links between the president's team and Russia, and concerns about possible delays in Trump's efforts to implement his economic stimulus plans have recently pressured the dollar. Interest rate futures implied traders saw about an 83 percent chance of a rate increase at the Fed's June meeting.
The dollar was marginally lower against the euro, which has enjoyed a bull run this month on factors including an ebb in French political concerns and upbeat euro zone data. The side effects of the European Central Bank's unconventional policy tools have remained "contained," so there is no reason to deviate from the policy path already laid down by the ECB, President Mario Draghi said on Wednesday. The euro was up 0.1 percent against the greenback at $1.1193.
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