The dollar fell on Wednesday as investors positioned for a U.S. interest rate hike in September pulled back after minutes from a Federal Reserve policymakers meeting delivered no solid signals on when the era of near-zero rates will end.
The keenly awaited minutes from the July 28-29 meeting of the Federal Open Market Committee showed just one panel member as ready to raise rates.
Others acknowledged that improving labor markets and other necessary economic conditions were falling into place for the first U.S. rate hike in nearly a decade, according to the minutes.
"These minutes don't give a clear view in either direction about September, about whether or not the Fed is more or less likely to hike in September," said Brian Daingerfield, currency strategist at the Royal Bank of Scotland in Stamford, Connecticut. "That is why you have seen the dollar sell off."