US Dollar Weakens on Fed Meeting Minutes and Inflation Concerns Linked to AI Demand

The US Dollar Index edged lower to around 101.00 during the Asian session on Thursday, extending its decline for the second consecutive day amid ongoing uncertainty over Federal Reserve policy. According to FX Street, the index remained confined within the previous day’s range, reflecting cautious market sentiment following the release of the Fed Meeting Minutes on Wednesday.

Meanwhile, the USD/CHF pair also traded subdued, hovering near 0.8070 through the Asian hours. FX Street noted that the Swiss Franc maintained strength against the US Dollar for the second straight day, as investors digested signals from the Federal Reserve’s recent communications.

CoinTelegraph reported that Federal Reserve officials highlighted persistent strong demand for AI infrastructure as a factor likely to sustain upward pressure on technology product and electricity prices, fueling inflation concerns. For Japanese investors, these developments underscore the importance of monitoring US monetary policy and inflation trends, which continue to impact global currency markets and risk sentiment.