Dollar Eases Ahead of Fed Minutes Amid Selloff Pause

The US dollar softened against major peers on Wednesday as Treasury yields eased from recent highs ahead of the Federal Reserve's minutes. The euro rose 0.19% to $1.1585, while sterling was 0.16% higher at $1.3554 after data showed UK inflation in July rose in line with expectations.

The Japanese yen strengthened to 159.15 per dollar, pulling away from the closely watched 160 level. Tom Samuelson, chief investment officer at Vineyard Global Advisors, said Japan's central banks have a strong incentive to keep the yen orderly due to structural problems.

A selloff in U.S. Treasuries appeared to have paused, with yields on the benchmark U.S. 10-year and 30-year bonds declining to 4.686% and 5.271%, respectively. The dollar index was down 0.21% at 99.43.