Euro hits session highs amid Fed minutes

Getty Images

The U.S. dollar held lower on Thursday after the release of the Federal Reserve minutes, while the euor hit a session high.

The minutes from the September meeting revealed that the FOMC did not raise rates in part because of global growth concerns.

At the meeting, the Fed held interest rates as expected but struck a surprisingly dovish tone about U.S. and global growth prospects.

"While financial market volatility has eased somewhat since the Fed's last meeting, many doubts about the health of China and emerging economies remain, which is likely to dampen the prospects of a Fed rate hike this year and likely keep the dollar's gains limited," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.

Santelli: Dollar in a wedge

Fed fund futures show a 38 percent chance of an end to the near-zero interest rate policy in December and a 50 percent chance in January, according to CME Group's FedWatch program.

Read MoreSwiss National Bank: Franc 'significantly overvalued'

The euro was up 0.32 percent at $1.1278 after hitting a high of $1.1328.

The dollar also fell against the Swiss franc, down 0.68 percent at 0.9671 franc.

Against the , the dollar was flat at 119.97. Earlier it hit a one-week trough of 119.60 yen.

The yen, traditionally a safe haven for investors in times of economic stress, has benefited from the volatile mood on stock markets since August amid broader concerns over the pace of global growth.

The greenback edged up a little bit after data showed U.S. weekly jobless claims fell in the latest week to a nearly 42-year low, suggesting an improving labor market.

Although Shanghai shares climbed 3.4 percent as Chinese markets resumed trade after being on holiday since the start of the month, European equity markets were down on the day.

"The bearishness on China has possibly been overdone somewhat," said Tobias Davis, a currency hedging manager with Western Union in London.

"But I would be very cautious in getting marginally bullish."

Sterling rose sharply before the release of the Bank of England's minutes of its last policy meeting. But it fell back after the minutes gave little new guidance on policy while playing down the impact of the problems in some emerging markets. Sterling was up 0.24 percent at $1.534.

Similarly, the euro dipped marginally after the publication of minutes from the European Central Bank's last meeting.