FOREX-Dollar drops following Fed minutes, risk appetite rises
* Dollar drops in wake of dovish Fed minutes
* Aussie hits 7-week high, NZ dollar hits 10-wk high
* Dollar index nurses losses, hits 3-week low (Updates prices, adds comments; changes dateline; previous LONDON)
By Sam Forgione
NEW YORK, Oct 9 (Reuters) - The U.S. dollar hit multi-week lows against the euro and Swiss franc on Friday after Thursday's minutes from the Federal Reserve's September meeting bolstered expectations for a later interest rate hike, while growth-linked currencies surged.
The dollar index, which measures the greenback against a basket of six major currencies, was set for its second straight week of losses after the minutes focused on external factors depressing the outlook for inflation.
"The comments about inflation remaining low, the concern that that's going to push the hike out to next year is exactly what's driving currencies across the board," said Jason Leinwand, managing director at Riverside Risk Advisors in New York.
The euro hit a three-week high against the greenback of $1.13790, while the dollar hit a three-week low against the Swiss franc of 0.95870 franc. The dollar index also hit a three-week low of 94.721.
The dollar rose, however, against the safe-haven yen as the outlook for accommodative central bank policy around the world drove traders into riskier currencies. Continuación...