Investing.com - The dollar trimmed gains against the other major currencies in quiet trade on Wednesday, as investors continued to digest the fact that the Federal Reserve is unlikely to raise interest rates this year.
The dollar was lower against the yen, with USD/JPY down 0.10% at 120.09.
The Bank of Japan refrained from expanding its stimulus program on Wednesday but there is still speculation the central bank could ease monetary policy at its October meeting.
Data last month showed that core inflation in Japan fell for the first time since the BoJ launched its $1.4 trillion quantitative easing program in 2013 in a bid to bolster growth and end years of deflation.
Meanwhile, the dollar remained under pressure by diminished expectations for a rate hike by the Federal Reserve this year in the wake of last Fridays unexpectedly weak U.S. jobs report for September.
The dollar was steady against the euro, with EUR/USD at 1.1266, off lows of 1.1212 hit earlier in the session.
The euro came under pressure earlier, after data showing that German industrial production fell at the fastest rate in a year in August, adding to concerns that a slowdown in global growth is spreading to the euro area’s largest economy.
German industrial output fell 1.2% from a month earlier, missing forecasts for a 0.2% increase.
The report came a day after data showing that German factory orders unexpectedly fell 1.8% in August.
Elsewhere, the dollar was lower against the pound and the Swiss franc, with GBP/USD up 0.49% at two-week highs of 1.5303 and with USD/CHF easing 0.09% to 0.9658.
The Office for National Statistics reported on Wednesday that U.K. industrial production rose 1.0% from a month earlier, well ahead of expectations for a 0.3% increase.
Industrial output rose 1.9% from a year earlier, compared to expectations for a 1.2% increase.
Manufacturing production was up 0.5% from a month earlier, the ONS said, but was down 0.8% on a year-over-year basis.
The Australian and New Zealand dollars were stronger, with AUD/USD gaining 0.77% to a two-week high of 0.7220 and with NZD/USD rallying 1.30% to a six-week peak of 0.6630.
Meanwhile, USD/CAD fell 0.21% to trade at 1.3007.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 95.49, after rising to highs of 95.77 earlier in the day.