Dollar Rallies as Fed Minutes Signal No Rush to Cut; EUR/USD and JPY Slide

The US dollar strengthened across the board after Federal Reserve meeting minutes revealed policymakers remain cautious about easing monetary policy, with some officials even open to rate hikes if inflation proves persistent. EUR/USD declined as the hawkish tone pushed US Treasury yields higher, widening the rate differential in favor of the greenback. USD/JPY also advanced as the yen weakened under pressure from the stronger dollar and elevated US yields, though Japanese intervention risks remain a key concern near the 160 level. The Fed's reluctance to signal imminent rate cuts stands in contrast to market expectations that had previously priced in multiple reductions this year, forcing a repricing of rate futures. The cautious policy stance reflects ongoing concerns about sticky inflation and a resilient US labor market. Near-term dollar support is likely to hold as long as incoming economic data continues to validate the Fed's patient approach. Traders should focus on upcoming CPI and employment releases for further directional cues on major dollar pairs.