FOREX-Dollar struggles near 27-month lows as Fed minutes eyed

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Iain Withers
LONDON, Aug 19 (Reuters) - The dollar struggled on
Wednesday, holding a whisker above a 27-month low hit overnight,
after a record run for stocks on Wall Street added to pressure
on the currency from simmering trade tensions between Washington
and Beijing.
The greenback was broadly flat at 92.15 against a basket of
currencies in early European trading and just a shade above a
April 2018 low of 92.124 seen on Tuesday. =USD
The dollar index has shed more than 5% since the end of
June, notching up its biggest monthly loss in a decade in July,
as broad market risk sentiment has picked up and investors have
bet on stronger economic recoveries outside the United States.
Marshall Gittler, head of investment research at BDSwiss
Group, said doubts about U.S. progress in controlling the spread
of COVID-19, the ongoing U.S.-China trade dispute and concerns
Congress will fail to agree a further relief package are
weighing on the dollar.
"The outlook for U.S. growth – already falling behind Europe
– is getting grimmer," Gittler said in a note.
A Citigroup economic surprise index, which measures the
difference in economic data relative to estimates, showed the
U.S. recovery .CESIUSD has sidelined in recent weeks while its
European index remained strong .CESIEUR .
The euro has been the main beneficiary of dollar weakness,
up 6% against the dollar since the end of June. The single
currency was up 0.1% on the day, remaining firmly above $1.19.
EUR=EBS
Currency analysts at MUFG said that while a surge in Wall
Street's S&P 500 had weighed on the dollar, anxieties about the
U.S. economy's outlook had also weakened the greenback's safe
haven appeal in financial markets.
Investors will keep an eye on the minutes from the Federal
Reserve's recent meeting due later on Wednesday for any hints on
further action it could take in September. Money market futures
expect no change in policy rates until the end of 2021.
Sterling was up nearly 0.2%, after official data showed
British inflation jumped unexpectedly last month to its highest
rate since March.