The dollar experienced a broad decline on Wednesday after the Federal Reserve released the minutes from its most recent policy meeting. The minutes suggested a more cautious approach to future interest rate hikes, leading investors to reassess their expectations for monetary policy.

The ICE U.S. Dollar Index, which measures the greenback against a basket of six major currencies, fell by 0.4% to 96.46. This decline reflects the market’s reaction to the perceived dovish tone of the Fed minutes.

Specifically, the minutes revealed concerns among some Fed officials about the recent slowdown in inflation. This has raised doubts about the central bank’s ability to continue raising rates at the pace previously projected.

The euro gained ground against the dollar, with the EUR/USD pair rising to 1.1375. The Japanese yen also strengthened, with USD/JPY falling to 113.20. Other currencies, including the British pound and the Swiss franc, also saw gains against the dollar.

Analysts noted that the dollar’s weakness could persist in the near term if economic data continues to disappoint and the Fed signals a further softening of its stance on interest rates. The market will be closely watching upcoming economic releases for further clues about the direction of monetary policy.