SYDNEY/SINGAPORE: The dollar hit a three-week low versus a basket of major currencies on Thursday after minutes from the Federal Reserve's March meeting disappointed dollar bulls, while the Aussie dollar surged on data showing solid Australian jobs growth.
Minutes of the Fed's March 19 meeting released on Wednesday showed Fed officials had worried the bank's forecasts on interest rates might appear to investors as mapping out a more aggressive cycle of rate hikes.
Analysts at JPMorgan said the minutes were taken as dovish by markets, adding they "contained no record of a discussion as to how long it would take between the end of asset purchases and the beginning of rate hikes."
The greenback remained on the defensive in the wake of the Fed minutes.
The dollar index hit a three-week low of 79.430 earlier on Thursday, well below a seven-week high of 80.599 set last Friday. It last stood at 79.526, down about 1.1 percent for the week.
The dollar index has pretty much relinquished the gains made since the head of the US central bank on March 19 suggested that interest rates may rise as soon as early next year.
On March 19, the Fed said it would wait a "considerable time" after ending its asset-buying program before lifting interest rates. Asked what the Fed meant by "considerable time", Janet Yellen said: "It probably means something on the order of around six months". Her comments had sent the dollar surging that day as investors quickly priced in the chance of a hike early in 2015.
Now, that rally has been almost completely unwound as markets have pushed back the timing of the Fed hike out to later in 2015.
The euro held steady near $1.3849, but was up about 1 percent on the week and remained well above a low of $1.3672 plumbed on Friday.
Against the yen, the dollar slipped 0.2 percent to 101.82 yen, holding near a three-week low of 101.55 yen that had been set on Tuesday.
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