The dollar tumbled against the euro and yen on Wednesday after the minutes from the Federal Reserve's latest policy meeting dented expectations of a near-term reduction in stimulus by the U.S. central bank. The dollar extended losses after Ben Bernanke said that highly accommodative monetary policy was needed for the "foreseeable future."
The dollar had rallied to three-year peaks against a basket of major currencies on Tuesday on bets the Fed may start slowing its $85-billion-a-month bond purchases as early as September, but the minutes suggested that might not be a sure bet.
(Read More: Fed Officials Showed Worry About Easing Policy)
Even as consensus built within the Fed in June about the likely need to begin pulling back on economic stimulus measures soon, many officials wanted more reassurance the employment recovery was on solid ground before a policy retreat.
"The minutes were not as hawkish as expected," said Joseph Trevisani, chief market strategist at WorldWideMarkets in Woodcliff Lake, N.J.