Investing.com - The broadly weaker dollar was nursing losses at two-month lows against the yen on Thursday after the minutes of the Federal Reserve’s November meeting showed that some officials remain concerned about low inflation.
USD/JPY was at 111.20 by 03:30 AM ET (08:30 AM GMT) after falling as low as 111.07 overnight, the weakest level since September 18.
The dollar slumped after Wednesday’s minutes of the Fed's latest meeting showed "many participants" were concerned inflation would stay below the bank's 2% target for longer than expected.
The minutes echoed comments by Fed Chair Janet Yellen earlier in the week that she was uncertain about the inflation outlook.
While a rate hike in December is still almost fully priced in, investors pared back expectations for further rate hikes in 2018.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last at 93.15, not far from the one-month low of 93.05 set overnight.
The euro edged higher, with EUR/USD last at 1.1831, moving closer to the one-month high of 1.1859 reached last week.
The euro was boosted after reports showing that private sector output in France and Germany accelerated in November bolstered the outlook for growth in the euro zone.
Sterling edged lower, with GBP/USD easing 0.08% to 1.3309, off the one-and-a-half month high of 1.3337 hit overnight.
Trade volumes remained relatively thin on Thursday with financial markets in Japan closed for a holiday. U.S. markets were to be closed for the Thanksgiving holiday.