FOREX-Dollar heads for second week of losses after Fed minutes
* 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
* Dollar index set for second straight week of losses (Updates prices, adds comments)
By Sam Forgione
NEW YORK, Oct 9 (Reuters) - The U.S. dollar hit multi-week lows against the euro and Swiss franc on Friday, the day after 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.
Investors "certainly looked at what the minutes of the meeting said, and that encouraged people to position themselves for the dollar to sell off," said Lane Newman, director of foreign exchange at ING Capital Markets in New York.
The euro hit a three-week high against the greenback of $1.13875 and was set to mark its highest percentage gain against the dollar in four weeks, at 1.3 percent. The dollar hit a three-week low against the Swiss franc of 0.95870 franc, while the dollar index also hit a three-week low of 94.692. Continuación...