The US dollar rose slightly on Wednesday, supported by rising oil prices, while investors awaited the minutes of the Federal Reserve meeting and comments from central bank officials for clues about the likelihood of an interest rate hike.

In trading, the dollar index, which measures the performance of the US currency against a basket of currencies, rose 0.3% to 102.13, recovering from a 0.27% decline on Tuesday. The euro fell 0.4% to $1.1216.

The euro relinquished some of its gains from the previous session, when French bonds rallied after the frontrunner in next spring's presidential election unveiled plans to cut spending. The yen also weakened despite a dovish member of the Bank of Japan's board announcing its support for raising interest rates.

The US Federal Reserve is scheduled to release later on Wednesday the minutes of its September monetary policy meeting, when it raised interest rates for the first time since 2023 in an effort to combat inflation.

Has the Federal Reserve's tone become less hawkish?

Statements from Federal Reserve officials appeared less hawkish after last week's personal consumption expenditure and jobs data came in below expectations.

On the other hand, the Japanese yen fell by 0.13% to 158.31 yen per dollar, while the British pound declined by 0.21% to $1.3248.

Brent crude futures rose again above $100 a barrel, amid concerns about supply disruptions due to a storm threatening US oil-producing regions, along with attacks by the Iranian-backed Houthi group in Yemen on Aden International Airport.

U.S. Vice President J.D. Vance told Reuters that ending the war that has shaken energy markets and fueled inflation for eight months requires Iran to make a substantial reduction in its uranium enrichment capacity.

Bond yields have risen globally in recent weeks due to expectations of interest rate hikes by central banks, coupled with concerns about public finances. French debt is under increasing pressure as the country struggles to contain its budget deficit before a divisive election in 2027. The call for early elections in Spain has also added to the pressure on the euro.

But the euro rose sharply on Tuesday after far-right French presidential candidate Marine Le Pen raised her target for cutting spending to 140 billion euros ($158 billion), compared with the 125 billion euros in savings she had originally planned if she came to power in 2027.

The head of the Bank of France, Emmanuel Moulin, said that the economic situation in France is serious, but the country does not need help from the European Central Bank at this stage.

The Bank of Japan’s new monetary policymaker, Ayano Sato, told Kyodo News in an interview that she supports a phased approach to raising interest rates. The Bank of Japan may signal this month that core inflation has nearly reached its 2% target, according to three people familiar with its thinking, indicating its readiness to raise interest rates again.

Expectations for a US interest rate hike in October have declined.

Expectations for the Federal Reserve to raise interest rates later this month have declined, but markets still anticipate further increases later this year and next year.

In contrast to calls for patience from some Federal Reserve officials, Kansas City Fed President Jeff Schmid said Tuesday that the central bank needs to raise its benchmark interest rate further to curb inflation, even as higher long-term yields take their toll on activity in some parts of the economy.

The probability of an interest rate hike of at least 25 basis points in October was 21.6%, compared with about 51% a week earlier, according to the CME Group's FedWatch tool, while markets are pricing in a 68.6% probability of a rate hike at the December meeting.

Federal Reserve officials Christopher Waller, Neel Kashkari, and Alberto Musallam are scheduled to speak later on Wednesday. The central bank is also set to release consumer credit data, which is expected to show a decline to $15 billion in August, compared to $18.06 billion in July.

The Australian dollar fell 0.21% against the US dollar to $0.6969, while the New Zealand dollar dropped 0.24% to $0.5609.