Dollar up ahead of Fed minutes

Dollar up ahead of Fed minutes

However, the yellow metal is sharply higher from its overnight lows. Silver added 18 cents to $16.62 an ounce.

In Britain, an unexpected jump in the jobless rate weighed on the pound, helping to send sterling down 0.44 percent to $1.3934.

Investors are looking to the release later Wednesday of minutes of the Fed's January policy-setting meeting for guidance.

Stocks careened into the red on Wednesday after the release of surprisingly hawkish Federal Reserve meeting minutes.

Markets widely expect the Fed to raise rates for the first time this year at its March meeting.

"While participants continued to expect economic activity to expand at a moderate pace over the medium-term, they anticipated that the rate of economic growth in 2018 would exceed their estimates of its sustainable longer-run pace and that labour market conditions would strengthen further", the record states.

Much of the blame for the sharp pullback and rise in volatility this month is an increase of concerns over the prospects for increased inflation.

With the balance sheet normalization plan set to remain on autopilot, barring a material deterioration in the economic outlook, the federal funds rate remains our primary tool for adjusting the stance of monetary policy.

Any positive impetus from rising US interest rates has been offset by a barrage of bearish factors in recent months.

The Dow Jones industrial average fell 166 points, or 0.7 percent, to 24,797. Meanwhile, the Nasdaq was flat.

Hong Kong-listed Chinese social media and mobile gaming company Tencent was among the biggest contributors to the losses on A300 Index, falling 2.5%.

The dollar rose to 107.78 yen from 107.30 yen on Tuesday.

Paris posted small gains at the close, but Frankfurt fell "after a string of disappointing" eurozone manufacturing numbers, noted Connor Campbell, financial analyst at Spreadex trading group.

US crude oil futures settled at $61.68 per barrel, down 11 cents, or 0.18 percent.

Since the lows seen last summer, inflation has moved up. The Hang Seng index rallied 1.8%, continuing to outperform the region after recovering from the widespread correction a few weeks ago.

Sticking closely to a view he laid out earlier this year, Harker said he expects the US economy to grow 2.5 percent this year before slowing to 2-percent growth next year and to below 2 percent in 2020.

Still, the yield has climbed more than 80 basis points from 2.04% in early September. Speculation has been swirling about the possibility the BOJ is scaling back its stimulus since the central bank reduced its purchases of government bonds in January.

For one, it came before employment, CPI and PPI reports for January showed ongoing labor market tightening, wage growth and evidence that inflation is heating up.