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

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

The "dollar index", which measures the performance of the greenback 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 at its lowest level in over two years.

In particular, traders are wondering if the U.S. central bank could decide to act again soon on interest rates.

However, the minutes of the last meeting of its monetary policy committee, which was held on July 28 and 29, "indicated a wait-and-see attitude regarding the control of the interest rate curve," notes Joe Manimbo of Western Union.

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

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

Prior to the dollar's rebound, sterling had remained stoic at the announcement of the latest U.K. inflation figures, which accelerated to 1% in July year-on-year, according to the Office for National Statistics on Wednesday.

It had fallen to 0.5% in May in the midst of containment, the lowest since June 2016.

"The resumption of Brexit negotiations, which appear to be encountering new problems," was also unlikely to move the pound, pointed out Michael Hewson of CMC Markets.

The trading teams were due to meet again on Wednesday in Brussels for a 7th session that will end on Friday, after a previous session with no real progress in London at the end of July.