The dollar weakened against a basket of currencies on Wednesday as a record of the Dec. 15-16 meeting from Federal Reserve policy-makers supported bets further U.S. rate hikes would be gradual on concerns about persistent low inflation.
Members of the Federal Open Market Committee, the Fed's policy-setting group, unanimously voted to increase U.S. rates for the first time in nearly a decade last month due to an improving labor market.
The dollar index that measures the greenback against a group of six currencies was last down 0.1 percent at 99.303 following the release of the FOMC minutes.
Earlier, the yuan fell to its lowest since the 2010 opening of its offshore market on worries about the Chinese economy.
Further losses across global stock markets stoked bids for the low-risk Japanese yen, which hovered near a three-month high versus the greenback and a nine-month peak against the euro.
The yuan's depreciation "does look like it's contributing to the overall cautious market mood," said Eric Viloria, currency strategist at Wells Fargo Securities in New York.
Despite market turbulence since the start of 2016 and data that signaled cooling in U.S. business activities, a top Federal Reserve official said the central bank remains on track for four more rate increases in 2016.