The dollar weakened Thursday, continuing a decline that began after minutes from a July meeting of Federal Reserve policy makers suggested that several of them may not be ready to raise interest rates in September.

The ICE U.S. dollar index a measure of the dollar’s strength against a basket of six currencies, was down 0.4% to 95.9630. It has shed 0.4% of its value so far this week, a significant move for the dollar-strength gauge.

The euro rose 0.8% to $1.1216, a one-week high, while the dollar weakened 0.4% against the Japanese yen to trade at 123.44.

The dollar found its bottom around 10:30 a.m. Eastern, and traded sideways for much of the session as U.S. stock prices dropped sharply.

The Dow Jones Industrial Average and S&P 500 recorded their largest one-day losses since Feb. 3, 2014. And the 10-year yield fell to its lowest level since April 30.

Overall, economic data released Thursday was mixed with jobless claims rising for a fourth straight week last week, while the Philly Fed index – a gauge of manufacturing conditions within the Philadelphia Federal Reserve district – showed manufacturing conditions improved in July.

Source : MarketWatch