Fed Minutes Stir Currency Markets Amid Global Tensions

The U.S. dollar weakened slightly on Thursday, maintaining its position above recent lows. This movement followed the release of Federal Reserve minutes, highlighting a lack of urgency among policymakers to cut interest rates, despite ongoing inflation concerns. This cautious approach left investors wary, particularly with building tensions in the Middle East.

In European markets, the euro stabilized after a sharp decline, with rumors circulating about European Central Bank President Christine Lagarde potentially leaving her position early. This speculation comes amid broader leadership changes at the Federal Reserve, which could bring unexpected shifts in monetary policy direction.

The yen faced a two-day downturn following the announcement of projects linked to Japan's significant U.S. investment pledge. This development underscores the complex dynamics influencing currency markets, with the Australia and New Zealand dollars experiencing varied impacts based on domestic employment data and central bank policies.