2014.07.0923:24:50UTC+00US dollar dives 1-week low on bets rates to stay near zero

The US dollar gauge dropped to one-week low despite bets the interest rates would stay near zero this year following the minutes of the Federal Reserve’s latest meeting failed to render cues on the timing of hikes.

The greenback wiped out 0.1% to ¥101.52 while it was slightly changed at $1.3646 per euro.

A volatility measure in the greenback versus the Japanese yen was close to a record low before the speeches of Fed Vice Chairman Stanley Fischer and Kansas City Fed President Esther George.

“There was still an expectation that the Fed would acknowledge the better economic data of late, and that just didn’t happen. That has been a consistent trend that the market gets disappointed with this and then pushes the dollar down,” said Emma Lawson, Senior Currency Strategist at National Australia Bank Ltd.

The Bloomberg Dollar Spot Index, trailing the dollar against 10 major counterparts, was at 1,004.45 as of 10:10 a.m. in Tokyo after it hit 1,004.28, the lowest since July 2.