The dollar fell versus the euro but rose against the yen on Wednesday as dealers awaited the conclusion of a US Federal Reserve monetary policy meeting and American economic growth data.
In London morning trade, the euro advanced to 1.3221 dollars from 1.3147 dollars late on Tuesday in New York.
Against the Japanese currency, the dollar climbed to 96.77 yen from 96.43 yen late Tuesday.
Investors were awaiting Wednesday's outcome of a two-day meeting at the Fed where monetary policymakers were expected to keep boosting the supply of cheap credit to the US economy since slashing the base interest rate to near zero.
Citi analyst Todd Elmer said he "expects no major innovations or policy adjustments" and for market focus to concentrate on what is contained in the US central bank's statement.
Elmer said there was an "outside chance that the Fed may go beyond its general commitment to keeping rates low for an extended period of time and set a specific target date, along the lines of recent statements by the Bank of Canada."
Elsewhere, the US government is to publish first quarter gross domestic product (GDP) data.
"The US dollar is softer across the board, except versus the yen, as investors have moved to trim risk averse positions established during the last few sessions," noted analysts at Societe Generale.
"Impetus is variously described as profit taking and/or a realisation that economic threats as a result of swine flu are, for now, adequately priced," they said.
The yen had firmed against the euro and dollar on Tuesday as fears of a swine flu pandemic spurred demand for safe-haven units like the Japanese currency.
However, these fears have since eased as investors took stock of the situation and measures taken by countries to contain the spread of the virus, which was first detected in Mexico.
In London trade on Wednesday, the euro was changing hands at 1.3221 dollars against 1.3147 dollars late on Tuesday, at 127.77 yen (126.76), 0.8964 pounds (0.8983) and 1.5047 Swiss francs (1.5026).
The dollar stood at 96.77 yen (96.43) and 1.1395 Swiss francs (1.1426).
The pound was at 1.4732 dollars (1.4632).
On the London Bullion Market, the price of gold rose to 894.65 dollars an ounce from 891 dollars an ounce late on Tuesday.
