2017.11.2302:29:00UTC+00Dollar on the Defensive on Fed Inflation Caution

The dollar nursed its losses on Thursday after notching a two-month low against the yen after the minutes of the Federal Reserve's meeting showed that some policymakers are concerned about low inflation.

The dollar index against a basket of six major currencies was slightly lower at 93.184, having lost 0.75 percent overnight.

Fed Chair Janet Yellen said that she was uncertain about the outlook for inflation and led markets to pare back pricing for more hikes next year.

While a move in December to between 1.25 and 1.5 percent is still almost fully priced in, Fed fund futures rallied to show rates at 1.75 percent by the end of next year.

The euro was enjoying the view at $1.1834 after rising from $1.1731 on Wednesday.

The greenback also stumbled to 111.27 yen, near its lowest since Sept. 20. The overnight move was the largest single-day drop versus the Japanese yen since May.

Trading conditions are likely to be thinner than usual on Thursday, with Japanese financial markets shut for a public holiday and U.S. markets closed for the Thanksgiving holiday.