Dollar Steady Ahead of Fed Insights as Rate Hike Odds Shift

The US dollar held onto its losses on Wednesday as traders awaited the release of the Federal Reserve's minutes from its September meeting and speeches from its policymakers for hints about future rate hikes. The euro had surged the day before after French bond yields fell following the frontrunner in next year's presidential election announcing plans to cut spending.

The Japanese yen weakened slightly despite comments from a dovish Bank of Japan board member who supported interest rate increases. The dollar index rose marginally to 101.94, while the euro dipped to $1.1249. The yen fell to 158.43 per dollar, and sterling dropped to $1.3262.

Recent data, including lower-than-expected PCE and jobs figures, has reduced the urgency for the Fed to raise rates, according to Gavin Friend, a senior markets strategist at National Australia Bank. While expectations for an October rate hike have dropped to 20.5%, markets still anticipate a hike in December.

In cryptocurrencies, bitcoin dropped 0.22% to $85,438.59, and ether declined 0.12% to $2,695.22. Fed officials Christopher Waller, Neel Kashkari, and Alberto Musalem are scheduled to speak later in the day, alongside the release of consumer credit data for August.