The dollar rose against the euro on Wednesday, regaining ground in the wake of a sharp decline in the greenback and after a document showing that the Federal Reserve (Fed) did not seem to be leaning immediately towards further easing of monetary policy.

Around 3:30 p.m., the euro was down 0.63% against the greenback, at 1.1856 dollar, after touching a high in more than two years the day before. 

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. 

In particular, currency traders are wondering if the US Central Bank could decide to act again on interest rates in the near future.

However, the minutes of the last meeting of its monetary policy committee, held on 28 and 29 July, "indicated an attitude leaning more towards a wait-and-see stance with regard to the control of the interest rate curve", notes Joe Manimbo of Western Union. 

The document "paused the dollar's rout and triggered profit-taking on the euro, the pound sterling and the Canadian dollar after their recent peaks," he added.

The same goes for Christopher Low, an economist at FHN Financial, for whom the renewed strength of the dollar "reflects the Fed's apparent lack of appetite for further monetary easing, despite its concerns for growth and inflation."

Before the dollar rebounded, the pound had 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 were due to meet in Brussels on Wednesday for a 7th session that will end on Friday, after a previous session with no real progress in London at the end of July.