The dollar fell after minutes from the Federal Reserve’s latest policy meeting led traders to reduce bets that the central bank will increase interest rates in September.

Most meeting participants “judged that the conditions for policy firming had not yet been achieved, but they noted that conditions were approaching that point,” according to minutes of the July 28-29 Federal Open Market Committee session, released Wednesday in Washington.

The Bloomberg Dollar Spot Index fell 0.4 percent to 1,206.87 as of 2:16 p.m. New York time.

Futures show traders see about a 38 percent probability the Fed will raise its benchmark rate at its Sept. 16-17 meeting, based on the assumption that the effective fed funds rate will average 0.375 percent after the first increase. That’s down from 50 percent before the minutes were released. The Fed has kept its key rate in a range of zero to 0.25 percent since December 2008.

Source : Bloomberg