The dollar index held its recent decline to around 104.2 on Thursday as hawkish signals from the Federal Reserve failed to lift the currency, while an improving risk sentiment globally weighed on the greenback further. Minutes of the Fed’s December meeting showed that officials backed keeping policy restrictive until they see compelling evidence that inflation is trending lower toward the 2% target. Fed officials also stated that a slower pace of rate hike in the last meeting should not be interpreted as a dovish pivot, as borrowing costs still need to increase, but highlighted the need to curb inflation without slowing the economy too much. Moreover, investors assessed data showing US manufacturing activity contracted for the second straight month in December, while job openings pointed to a resilient labor market in November. Investors now look ahead to the December jobs report on Friday, which will be the last employment report before the Fed meets in February.