The US federal reserve has issued the minutes from its last meeting showing it is still keeping a keen eye on inflation and its decision to hold interest rates was a "close call".

The dollar started the day at €0.77925 and £0.52645 and 117.07000 yen.

At the federal open market committee meeting on August 8th, the decision to hold the campaign of interest rates was taken despite inflation reservations.

The minutes stated: "Many members thought that the decision to keep policy unchanged at this meeting was a close call and noted that additional firming could well be needed."

It added: "All members agreed that the statement to be released after the meeting should convey that inflation risks remained dominant and that consequently keeping policy unchanged at this meeting did not necessarily mark the end of the tightening cycle."

The minutes show that further interest rate increases could come in the US - increasing the value of the dollar - but that inflationary pressures could also eventually ease off.

"Although the moderation in the growth of aggregate demand would help limit inflation pressures over time, the committee judged that some inflation risks remained," the minutes stated.