Euro pares back gains after ECB minutes

The euro pared back gains against the softer dollar on Thursday after the minutes of the European Central Bank’s October meeting said the risk that it would miss its inflation target again has increased.

The minutes said current measures may not be enough to help the bank achieve its inflation target.

The bank reiterated that it is ready to act and would reexamine its policies at its upcoming meeting on December 3.

The euro was lower against the yen, with EUR/JPY slipping 0.19% to 131.5.

The central bank maintained its pledge to increase the purchase of Japanese government bonds at an annual pace of ¥80 trillion.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.22% to 99.44, off Wednesday’s highs of 99.96, the strongest since April 14.

Wednesday’s minutes of the Federal Reserve’s October meeting showed that most officials believe the conditions for raising interest rates could be met by its December meeting.

The U.S. central bank kept rates on hold at its October meeting but sent a strong signal that it may hike rates next month and downplayed concerns over the impact of slowing global growth on the U.S. economy.

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