Dollar Hovers Near Multi-Month Lows as Treasury Yields Slip

The US dollar hovered near multi-month lows against major peers on Wednesday as Treasury yields eased from recent highs, awaiting minutes of the Federal Reserve's latest policy meeting for clues on interest rates.

The euro inched up 0.1% to $1.1585, remaining close to a two-month high touched earlier this week, while sterling was a touch higher at $1.3538, holding near a three-month high ahead of British inflation data due later on Wednesday.

The Japanese yen also strengthened marginally to 159.32 per dollar, pulling away from the closely-watched 160 level after giving back much of its intervention gains. The dollar index, which measures the US currency against six major peers, was down 0.1% at 99.55.

Market participants now turn to the Federal Reserve's release of minutes from the most recent meeting of its monetary policy-setting Federal Open Market Committee later in the day, looking for clues as to policymakers' views on interest rates.