Forex-Dollar softens as bond market steadies ahead of Fed minutes

The euro EUR= rose 0.19% to $1.1585, remaining close to the two-month high touched earlier this week. Sterling GBP=D3 was 0.16% higher at $1.3554 after data showed UK inflation in July rose in line with expectations.

The Japanese yen JPY=EBS also strengthened to 159.15 per dollar, pulling away from the closely watched 160 level after giving back much of its intervention gains.

"Japan is struggling with structural problems. But I think the central banks have a strong incentive to keep the yen orderly," said Tom Samuelson, chief investment officer at Vineyard Global Advisors.

The dollar index =USD, which measures the U.S. currency against six major peers, was down 0.21% at 99.43.