The dollar fell to near two-week lows against major currencies on Wednesday as some traders pared back bets on a reduction in stimulus by the Federal Reserve next week.
The yen rebounded against the dollar, though remained close to a seven-week low struck earlier. The yen also hit a 3-1/2-month trough versus the euro and a four-year low against sterling as easing tensions over Syria dented demand for the safe-haven Japanese currency.
Traders said uncertainty about Syria and the Fed could keep major currencies in a range.
The dollar index, a measure of the greenback versus six major currencies, slipped 0.4 percent to 81.51, seeing its weakest levels since Aug. 29.
The euro rose 0.3 percent to $1.3307. The dollar fell 0.5 percent to 99.85 yen, off a session peak of 100.60 yen, which was the strongest since July 22. Analysts said the dollar would mostly hold above the 100 yen level in coming sessions.
The euro was down 0.2 percent at 132.91 yen, having hit a an intra-day peak of 133.36 yen, its highest since May 22.
Better-than-expected economic data and improving market sentiment has helped the single currency lately, but analysts at Morgan Stanley warned the euro's strength could be short-lived and they remain sellers on any rallies.
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