In mid-afternoon trading, the euro rose to the day's peak of $1.2748, the highest since Sept. 26.
The euro recovered from earlier losses incurred after Spain posted its weakest industrial output growth for almost a year.
That came a day after corresponding data from Germany showed industrial output in the euro zone's biggest economy fell by 4 percent in August, the biggest drop since the height of the financial crisis.
Against the yen, the dollar trimmed gains to trade flat on the day at 108.06. The greenback fell to a more than one-week trough versus the Swiss franc and was last at 0.9511 franc, down 0.6 percent.
The dollar index, a gauge of the greenback's value against six major currencies, was down 0.5 percent to 85.234. It fell as far as a two-week low of 85.21.
The Fed minutes fell in line with dovish comments from Fed speakers on Tuesday. Minneapolis Federal Reserve Bank President Narayana Kocheralakota said on Tuesday low inflation should compel the Fed to withhold from raising interest rates for now, despite a fall in U.S. unemployment.
New York Federal Reserve President William Dudley, meanwhile, said he was less confident that labor market participation would rebound, adding that a stronger dollar could further dampen inflationary pressures.
With the Fed due to complete winding down its $4 trillion bond-buying program this month, and the International Monetary Fund having cut its global economic growth forecasts for the third time this year, a mood of risk aversion permeated markets.
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