The greenback ended the day marginally higher against majority of its peers on Wednesday before retreating after FOMC minutes confirm near-term rate hike expectations.  
  
Reuters reported all participants at the Federal Reserve's May 3-4 policy meeting backed a half-percentage-point rate increase to combat inflation they agreed had become a key threat to the economy's performance and was at risk of racing higher without action by the U.S. central bank, minutes of the session showed on Wednesday. This month's 50-basis-point hike in the Fed's benchmark overnight interest rate was the first of that size in more than 20 years, and "most participants" judged that further hikes of that magnitude would "likely be appropriate" at the Fed's policy meetings in June and July, according to the minutes. "All participants concurred that the U.S. economy was very strong, the labor market was extremely tight, and inflation was very high," the minutes said, with risks of even faster inflation "skewed to the upside" given ongoing global supply problems, the Ukraine war, and continued coronavirus lockdowns in China.  
  
Versus the Japanese yen, dollar found renewed buying at 126.66 at Asian open and gained to 127.29 in early European morning. Despite retreating to 126.81 at New York open due partly to cross-buying in jpy, the pair then found renewed buying and rose to an intra-day high of 127.49 in New York due to broad-based usd's rebound before easing.  
  
The single currency remained under pressure in Asia and fell in European trading to an intra-day low at 1.0643 at New York open on broad-based selling in euro especially vs sterling. The pair then recovered to 1.0694 in New York on retreat in usd after FOMC minutes.  
  
The British pound traded with a firm bias in Asia and gained to 1.2559 in early European morning. Despite falling to an intra-day low at 1.2482 in tandem with euro, cable then rebounded strongly to session highs of 1.2590 in New York due partly to cross-buying in sterling especially vs euro.  
  
Data to be released on Thursday:  
  
Australia capital expenditure, building carpex, Germany Market Holiday, France Market Holiday, Swiss Market Holiday, Italy business confidence, consumer confidence, industrial sales, U.S. GDP, PCE prices, initial jobless claims, continuing jobless claims, pending home sales, KC Fed manufacturing, Canada retail sales and average weekly earnings.  

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