On Thursday, the USD slipped in Asia after the release of the Fed minutes.
Fed minutes released on Wednesday showed its officials agreed that the stance of policy would likely remain the same unless incoming information about the economy did not lead to a material reassessment of the economic outlook.
However, Fed officials also see downside risks surrounding the economic outlook as elevated. They further underscored the case for a rate cut at the October meeting.
They cited low business investment and exports resulting from weak global growth and elevated uncertainty about trade developments.
The US Dollar index was near flat at 97.785 by 04:59 GMT.
The US-China trade tension in focus
The US-China trade tension also rose following reports that Trump might sign a bill to support protesters in Hong Kong.
Chinese foreign ministry’s spokesman called it a blatant interference with China’s internal affairs. He added that the USA would face negative consequences if they persisted.
News added to uncertainties after Trump commented that he would raise tariffs if the two sides did not reach a trade agreement.
Investors had hoped the two sides would sign the deal in Chile in Mid-November, but the deadline was left in limbo when the conference was canceled.
Earlier this week, CNBC reported that China was pessimistic about reaching a trade agreement with the US.
“Friction between the United States and China is starting to spread from trade to questions about China’s human rights,” Tsutomu Soma said.
“This is the perfect opportunity to book some profits and unwind some risk-on trades, which is supportive for the yen and government bonds,” he added.
Soma is the general manager of fixed income business solutions at SBI Securities Co in Tokyo.
The USD/JPY pair remained flat at 108.58.
The AUD/USD pair dropped 0.1% to 0.6797. The NZD/USD pair also fell 0.1% to 0.6413.
The USD/CNY pair inched up 0.1% to 7.0394.