The U.S. dollar was hovering just below three-week highs in subdued trade on Wednesday as investors looked ahead to the minutes of the Federal Reserve's July meeting later in the day for fresh clues on the monetary policy outlook.

The Fed cut rates for the first time since 2008 last month in what Chairman Jerome Powell called a “mid-cycle adjustment.” Financial markets are still expecting further rate cuts before the end of the year against a background of heightened trade tensions and slowing growth.

The U.S. dollar index against a basket of six major currencies edged up 0.12% to 98.17 by 03:05 AM ET (07:05 GMT) after shedding 0.2% overnight.

The index had climbed to 98.33 on Tuesday, its highest since Aug. 1, as U.S. yields bounced from multi-year lows at the week's start on signs global policymakers were ready to step up stimulus support to stave off a steep economic downturn.

The dollar rose 0.34% to 106.58 yen reversing a part of the previous day's losses, while the euro was a touch lower at 1.1089 having put on 0.2% overnight.

Source : Investing.com