The dollar fell against a currency basket for the first time in seven days on Wednesday, as investors consolidated gains and booked profits on a day with no major U.S. economic data and as global stock markets were down.
The greenback posted steep losses against the yen, which has fallen about 3.2 percent over the last seven days. The yen's recent losses had halted a run of gains that had propelled it to 18-month highs versus the dollar early this month.
"The dollar's bias hasn't meaningfully brightened given deep market skepticism in the Federal Reserve firing an interest rate hike in the near future," said Joe Manimbo, senior market analyst, at Western Union Business Solutions in Washington.
"Consequently, the foggy outlook for a Fed rate hike risks undercutting dollar rallies."