The dollar fell on Thursday, after rising to an almost three week high a day earlier, with minutes of the Federal Reserve's last meeting providing few clues on when the United States might start cutting interest rates.

Minutes of the December policy meeting released on Wednesday showed Fed officials convinced inflation was coming under control and concerned about the risks of the central bank's "overly restrictive" monetary policy on the economy.

However, there were no clear-cut clues on when the Fed could begin easing rates, with policymakers still seeing a need for rates to stay restrictive for some time.

Against a basket of currencies, the greenback fell 0.11% to 102.29, after hitting a three-week peak of 102.73 on Wednesday.

The euro rose 0.25% to $1.0950, having fallen to a more than two-week low on Wednesday, after France and other European countries reported inflation figures.

Markets expect a rebound in headline inflation in the euro zone in the December print due on Friday.

Sterling rose 0.25% to $1.2694.

Elsewhere, the Australian dollar, often used as a proxy for risk appetite, rose 0.2% to $0.6744, breaking away from Wednesday's two-week low of $0.6703.

The risk-sensitive New Zealand dollar also rose 0.26% to $0.6263, having similarly touched a two-week low of $0.6221 in the previous session.

The greenback pushed to an over two-week high against the yen, with Japan back from an extended New Year break.

The dollar peaked at 143.90 yen and last changed hands at 143.71, up 0.3%.

In geopolitics, Hezbollah in Lebanon and the Israeli army made statements suggesting the two avowed enemies wanted to avoid the further spread of war beyond the Gaza Strip, after a drone strike killed a Palestinian Hamas deputy leader in Beirut.

Source: Reuters

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