Investors continued selling US dollars on Wednesday because of increasing expectations that the Federal Reserve will launch a big program of bond purchases this year in support of the economy.
The central bank on Tuesday released minutes from policymakers' September meeting. The minutes heightened traders' expectations that the Fed was close to enacting a new bond-buying program, perhaps as soon as November.
Buying up government debt would likely drive record-low interest rates even lower. That can encourage consumers and companies to borrow and spend more, but it tends to weigh on the value of currencies.
In mid-day trading in New York, the euro rose to $US1.3961 from $US1.3914 late on Tuesday.
While investors think the Fed's future moves will weaken the dollar, the European Central Bank will likely pursue a path that would support the euro, said Brown Brothers Harriman analysts in a research note Wednesday.
The ECB was likely to end special measures to support financial markets, boosting interest rates, they wrote.
The British pound also gained to $US1.5839 from $US1.5778, while the US dollar was almost unchanged at 81.89 Japanese yen from 81.88 yen. The dollar dropped to 1.0029 Canadian dollars from 1.0109 Canadian dollars, but edged up to 0.9592 Swiss francs from 0.9578 Swiss francs.
AP