FOREX-Dollar index hits 2-week lows as Fed minutes show inflation concerns

* Fed minutes hint at uncertainty on inflation outlook

* Dollar under pressure on fading hopes on Trump's tax plan

* Euro reaches 2-week peak on less worries about Catalonia

(Updates market action, adds quote) NEW YORK, Oct 11 (Reuters) - The dollar fell on Wednesday to a two-week low against a basket of currencies, as the U.S. Federal Reserve's latest minutes hinted policy-makers are open to an interest rate increase in December despite concerns about weak inflation. Several Fed officials expressed they would like more inflation data in the next few months when deciding on future rate hikes. That view within the Fed raised some doubts among traders that a third rate increase in 2017 would be a sure thing, though it has largely been priced into the futures market. "Any comments on concerns about inflation outlook signals a bit a dovish mindset," said Minh Trang, senior currency trader at Silicon Valley Bank in Santa Clara, California. Futures markets suggested traders saw an 88 percent chance the Fed would raise rates in December, little changed prior to the release of the latest Fed minutes, CME Group's FedWatch program showed. The Fed minutes pressured the dollar, which has weakened from a 10-week high since Friday, when the September payrolls report showed employers cut jobs. "After last Friday's disappointing payrolls number, people has been taking profit" on U.S. dollar positions, said Lennon Sweeting, chief market strategist at XE in Toronto. Investors were also concerned U.S. President Donald Trump could hurt his tax reform plan by feuding with Senator Bob Corker, a fellow Republican whose vote Trump will probably need.

The dollar index, which measures the greenback against six currencies, lost nearly 0.4 percent to 92.937 after hitting its lowest since Sept. 26. The greenback was particularly weak versus the euro as Spanish stocks and bonds surged after Catalonia stopped short of formally declaring independence from the rest of Spain.

The single currency was also supported by expectations that the European Central Bank would announce at its policy meeting later this month that it would wind back its 2.3 trillion euro bond-buying program. Any more advances by the euro should be limited since it has already appreciated more than 12 percent against the dollar this year, analysts said. The euro reached a two-week peak at $1.1864. It was last at $1.1863, up 0.5 percent from Tuesday.


Currency bid prices at 3:21PM (1921 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change


Euro/Dollar EUR= $1.1863 $1.1806 +0.48% +12.84% +1.1864 +1.1796 Dollar/Yen JPY= 112.3700 112.4400 -0.06% -3.85% +112.5800 +112.0800 Euro/Yen EURJPY= 133.31 132.76 +0.41% +8.26% +133.3300 +132.4700 Dollar/Swiss CHF= 0.9726 0.9749 -0.24% -4.44% +0.9767 +0.9717 Sterling/Dollar GBP= 1.3225 1.3202 +0.17% +7.21% +1.3228 +1.3177 Dollar/Canadian CAD= 1.2463 1.2513 -0.40% -7.20% +1.2530 +1.2464 Australian/Doll AUD= 0.7796 0.7776 +0.26% +8.05% +0.7809 +0.7771


Euro/Swiss EURCHF= 1.1540 1.1513 +0.23% +7.68% +1.1541 +1.1499 Euro/Sterling EURGBP= 0.8970 0.8940 +0.34% +5.31% +0.8988 +0.8940 NZ NZD= 0.7089 0.7067 +0.31% +2.13% +0.7098 +0.7064


Dollar/Norway NOK= 7.9165 7.9496 -0.42% -8.34% +7.9562 +7.9078 Euro/Norway EURNOK= 9.3927 9.3880 +0.05% +3.38% +9.3998 +9.3725 Dollar/Sweden SEK= 8.0430 8.0719 +0.13% -11.69% +8.0829 +8.0443 Euro/Sweden EURSEK= 9.5429 9.5306 +0.13% -0.39% +9.5510 +9.5215

All spots FX= Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX World central bank news CEN

Economic Forecasts... ECON Official rates...INT/RATE Forex Diary.......MI/DIARY Top events........M/DIARY

Diaries...........DIARY Diaries Index........IND/DIARY Press Digests.....PRESS Polls on G7 economies..SURVEY/ European markets......MARKETS/))

(Additional reporting by Jemima Kelly, Saikat Chatterjee in London; Shinichi Saoshiro in Tokyo; Editing by David Gregorio and Richard Chang)