U.S. dollar extends losses after Fed minutes

NEW YORK, May 20 (Reuters) - The U.S. dollar extended losses on Wednesday, hitting its lowest level in nearly five months after minutes of the Federal Reserve's last policy meeting showed the Fed mulled increasing purchases of mortgage agency and government securities.

The ICE Futures' dollar index _.DXY, which tracks the dollar's movements against six major currencies, to as low as 80.909, its lowest since early January.

The U.S. Federal Reserve saw modest improvements in the economic outlook at its April meeting, but mulled increasing purchases of mortgage agency and government securities in the future to give the recovery an additional push. [ID:nWEQ001023].

The euro surged 1.4 percent to $1.3811 EUR=EBS, having climbed as high as $1.3830, a near five-month peak, according to Reuters data. The dollar fell 1.1 percent to 94.94 yen JPY=.

Sterling rose to a six-month high against the dollar and was last up 1.8 percent at $1.5747 GBP=D4.

(Editing by Diane Craft)