The dollar weakened as traders interpreted that only one more rise in US interest rates was likely. Looking ahead, US consumer price data is due for release and should focus the market's attention with the headline figure expected to rise by 0.4 per cent.

GBP
As with previous months, economists expect the Bank of England's MPC minutes to reveal that the majority of committee members support the current "wait and see" policy. The market is now pricing in a higher probability for the next move being a rise in interest rates.

USD
The Fed has lifted its benchmark rate 15 times since June 2004 to 4.75 per cent. FOMC minutes showed that the end of the tightening campaign is "likely to be near", and that members were concerned about the risk of going too far, and also felt that inflation "was not in the process of moving up".

EUR
The euro continued to strengthen against the dollar mainly due to the markets' views on future interest rate. The euro may also gain from speculation that CPI figures will show inflation accelerated, adding to the case for higher interest rates.

JPY
The Japanese yen posted gains on speculation that Japanese investors will capitalise on the highest bond yields in almost seven years.

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