* Dollar reverses earlier strength, falls against euro
* Fed meeting minutes in focus, inflation views key
* ECB President Draghi to speak
(Adds comments, updates prices)
By Karen Brettell
NEW YORK, July 9 The U.S. dollar fell against
the euro on Wednesday as investors awaited the release of
minutes from the Federal Reserve's June meeting for any
indications of how soon the U.S. central bank will raise
The dollar has struggled to break above relatively tight
ranges against the euro and the Japanese yen as investors look
for stronger signals that the economy is gaining enough momentum
for the Fed to begin increasing interest rates.
The greenback has largely tracked Treasuries moves this
week, gaining slightly as U.S. bond yields fall. The dollar
retraced mild gains made earlier on Wednesday as U.S. Treasuries
also pared some of their weakness.
"Some of the earlier strength was probably due to the slight
move higher in U.S. Treasury yields," said Eric Viloria, a
currency strategist at Wells Fargo Securities in New York.
The dollar was last down 0.19 percent against the euro
at $1.3636. It gained 0.13 percent against the yen
to 101.70 yen.
The dollar index, which tracks the greenback against
a broad basket of currencies, fell 0.15 percent to 80.059.
With no major economic data releases this week, the minutes
from the Fed's meeting will take center stage.
Any discussion by Fed members about a recent uptick in U.S.
consumer prices will be a key focus for investors perusing the
minutes, after Fed Chair Janet Yellen downplayed inflation data
following the June meeting as being "noisy."
"The characterization by Fed Chair Yellen of the inflation
pop up as noise really took the wind out of the sails of the
near-term hawks," said Steven Englander, global head of G10
foreign exchange strategy at CitiFX in New York.
Most investors expect Wednesday's minutes to be in line with
Yellen's comments in June, with some anticipating a more hawkish
tone. That leaves the larger risk of the minutes being more
dovish than expected, which would likely send the dollar and
U.S. bond yields lower, said Englander.
The dollar has been largely stuck in a range as the Fed is
seen as offering few surprises in the near term. Other central
banks, including the European Central Bank, are also seen as
being on a set course in the near term.
The Fed is seen as unlikely to signal a stronger chance of a
rate hike until it has several more months of data. The ECB is
unlikely to change policy before its targeted longer-term
refinancing operations, meant to help stimulate growth in the
region, are entered into later this year.
"Policy has been somewhat steady on both sides," said Wells
Fargo Securities' Viloria. "The loans should expand the ECB's
balance sheet as they provide more liquidity and that should be
a euro negative."
European Central Bank President Mario Draghi is due to speak
later on Wednesday.
(Editing by Bernadette Baum and Jonathan Oatis)