Short-term U.S. interest rates in the over-the-counter market on Thursday suggested traders now see just a one-in-three chance of a September rate hike, down from 48 percent a week ago.
"Many were disappointed that the Fed remained decidedly noncommittal (in the minutes) but we think the door to a September hike remains wide open," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.
U.S. jobless claims data issued on Thursday showed the underlying strength of America's labor market and economy allowed for a rate hike, Esiner said.
"These are data to put into the column that argues for a September rate hike by the Fed," he said.
The dollar index was last off 0.44 percent at 95.94, while the dollar was down 0.49 percent against the yen at 123.44 yen and the British pound was up 0.03 percent against the dollar at $1.5687.
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The euro touched $1.2220, its best showing against the dollar since June 30, before trading at $1.1207 as Greek Prime Minister Alexis Tsipras confirmed he was submitting his resignation.
The euro has become a favored funding currency for emerging markets investors and others borrowing in currencies with relatively low interest rates and was gaining from those investors exiting risk assets, according to Esiner.
"The euro is poised to benefit from continued global volatility," Esiner said.
Emerging markets took a fresh battering as Turkey's lira plunged to a fresh record low. Concerns over fast-falling oil and commodity prices were aggravated by turmoil in the Chinese markets.
The Norwegian crown fell to its lowest in over seven months against the euro after Norway's economy slowed in the second quarter, leaving the door open for more monetary easing in coming months.