The Bloomberg Dollar Index nearly erased its intraday losses as Federal Reserve July meeting minutes revealed that most committee members view inflation as a greater concern than employment risks. The New Zealand dollar declined after the Reserve Bank of New Zealand cut interest rates and hinted at potential further monetary policy easing.

The Bloomberg Dollar Index remained essentially flat, having reached a two-week high during Asian trading and touching intraday lows after Trump urged Fed Governor Lisa Cook to resign.

The Federal Housing Finance Agency Director has urged the Attorney General to investigate Cook regarding two mortgage loan matters.

The Fed's late July policy meeting minutes showed that officials acknowledged concerns about both upward inflation pressures and employment weakness, but "most participants viewed upside risks to inflation as the greater of these two risks."

The Bloomberg Dollar Index's one-month risk reversal indicator has issued a bullish signal for the first time since July.

The New Zealand dollar fell as much as 1.3% against the US dollar to 0.5815, reaching its lowest level since April 14.

Goldman Sachs economists expect the Reserve Bank of New Zealand to cut rates by another 25 basis points in both October and November.

The Australian dollar declined 0.3% against the US dollar to 0.6432, approaching a three-week low, weighed down by the New Zealand dollar's weakness.

The euro gained 0.1% against the US dollar to 1.1659.

The euro remained essentially flat against the Swedish krona at 11.1757, as Sweden's central bank kept interest rates unchanged to address recent upward inflation pressures while reiterating potential rate cuts later this year to support the weak economy.

The British pound fell 0.3% against the US dollar to 1.3453, reversing gains made after UK inflation data was released.

UK inflation rose to an 18-month high in July, primarily driven by higher prices for airfares, hotels, and motor fuel.

The US dollar declined 0.3% against the Japanese yen to 147.21, marking its second consecutive day of losses.

US tariff impacts contributed to Japan's July exports posting their largest decline in over four years.