The Dollar remained close to a one-month low on Thursday as risk appetite improved on Fed minutes confirming a possible pause in rate hikes after two increases in June and July.

The Dollar index – measuring the greenback against six major rivals – stood at 102.03 at the time of writing, consolidating around this point after a brief rally straight after the Federal Reserve meeting minutes were released on Wednesday.

As trading in Asia started, the rally waned, with analysts stating there was little surprise to the minutes. There was an overnight Wall Street rally, Reuters reports, whilst long-term Treasury yields were steady.

Earlier in the week, Atlanta Federal Reserve President, Raphael Bostic had indicated a pause in rate hikes could be on the cards in September to track the impact on the economy following two  50-basis-point increases in June and July. 

"A soft DXY backdrop is forming, with risk appetite firming," said Westpac strategists, referring to the Dollar index.

"It's still too early to call a long-term DXY peak though. DXY could range for a bit, but retracements into the 101 level are a buy."

The Dollar index hit close to a 20-year high over 105 in the middle of May, yet traders have reduced tightening bets on signals an aggressive stance by the Fed could be slowing economic growth.

In addition, the greenback was little changed against the Japanese Yen at 127.325 Yen, whilst the Euro rose 0.14% to $1.06955. The single currency was bolstered by comments this week by European Central Bank president Christine Lagarde, indicating rates could move into positive territory in the Eurozone in Q3. The Euro hit a one-month high of $1.0748 on Tuesday following the comments.

Elsewhere Sterling was flat at $1.2584, whilst the Australian Dollar declined 0.07% to $0.7082, and the New Zealand Dollar fell to $0.6474.