The U.S. dollar weakened as investors awaited and then parsed minutes from the Federal Reserve’s July 28-29 meeting, which showed no support for rate cuts and highlighted how far the policy debate has shifted over the past year. Markets had once expected easing in 2025 as inflation cooled, but persistent price pressures have kept the outlook restrictive. Recent data showing slightly softer inflation and an unexpected reduction in jobs in July have nonetheless strengthened expectations that the Fed will leave rates unchanged again at its Sept. 15-16 meeting. The minutes also pointed to divisions among officials over whether inflation remains strong enough to warrant further tightening, even as policymakers have grown more cautious about labor-market resilience and risks to the full-employment side of the Fed’s mandate. In currency markets, the U.S. Dollar Index fell more than 0.50% to 99.15, EUR/USD rose to 1.1632, and dollar-yen traded near 158.38 after retreating from 159.64 as U.S. long-term yields eased.