The euro was close to balance on Wednesday against the dollar, a day after a sharp decline in the greenback and as currency traders await the minutes of the Fed's latest meeting later in the day.

Around 09:15 GMT (11:15 CET), the euro gained 0.14% against the greenback, at 1.1948 dollar, after touching a high in more than two years the day before.

"All the attention is on the U.S. dollar, which has started a general pullback in currency markets," said Jeffrey Halley of Oanda.

The dollar index, which measures the greenback's performance against a basket of currencies, has lost around 5% since the beginning of July, and more than double since its annual high reached on March 20.

It is trading at its lowest level in more than two years.

Movements in the foreign exchange market suggest that "monetary policy expectations remain essential" for foreign exchange traders, said Derek Halpenny, an analyst at MUFG.

The minutes of the last monetary meeting of the US Federal Reserve (Fed) are expected later in the day.

It "could pave the way for a change in the Fed's monetary policy in September, with the implementation of an average inflation target," said Ipek Ozkardeskaya of Swissquote Bank.

Meanwhile, the pound remained stoic at the announcement of the latest inflation figures in the United Kingdom, which accelerated to 1% in July over a year, according to the Office for National Statistics on Wednesday.

It had fallen to 0.5% in May in full lockdown, the lowest since June 2016.

"The resumption of Brexit negotiations, which seem to be facing new problems," was also not likely to move the pound, pointed out Michael Hewson of CMC Markets.

The negotiating teams meet on Wednesday in Brussels for a 7th session that will end on Friday, after a previous session without real progress in London at the end of July.

Around 09:15 GMT (11:15 CET), the pound sterling was stable against the single currency at 90.15 pence per euro.

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                 09:15 GMT     21:00 GMT

EUR/USD  1.1948            1.1931

EUR/JPY   125.89            125.77

EUR/CHF    1.0778          1.0783

EUR/GBP    0.9015          0.9012

USD/JPY    105.38          105.41

USD/CHF    0.9021        0.9038

GBP/USD   1.3254        1.3239