NEW YORK (AFP) - The dollar recouped some of its losses as traders re-examined Fed comments suggesting a pause in the upward movement of US interest rates.
The euro traded at 1.2268 dollars at 2100 GMT, from 1.2330 late Tuesday in New York.
The dollar was at 110.54 yen after 109.73 on Tuesday.
Overall, the greenback continued to recover from its heavy overnight falls in the wake of Tuesday's rate-setting meeting of the US Federal Reserve.
While the Federal Open Market Committee hiked US interest rates by a quarter point to 1.75 percent, fully in line with expectations, it pledged to continue raising rates at a "measured" pace.
The market was particularly concerned at the Fed's assessment that "inflation and inflation expectations have eased in recent months," prompting concern that Fed policymakers might pause before hiking rates again.
Steve Barrow, currency strategist at Bear Stearns, said the initial reaction seemed to be technically driven and overdone.
"There was no real need to sell dollars on the back of what the FOMC did," he said.
Testimony earlier from the European Central Bank's president Jean-Claude Trichet failed to excite the currency markets as it basically echoed his comments after the last ECB rate-setting earlier this month.
Trichet told the European Parliament's economic and monetary affairs committee he expected the eurozone's gradual recovery to continue in the coming quarters.
But he warned that higher oil prices could dampen demand or increase inflationary pressures.
In late New York trade, the dollar stood at 1.2591 Swiss francs from 1.2537 Tuesday.
The pound was at 1.7938 dollars after 1.7966.