Dollar rose in European trade on Wednesday against a basket of major rivals, maintaining gains for the fifth straight session and moving in a positive zone as US 10-year treasury yields rebounded.

It comes ahead of the Federal Reserves meeting minutes, which could provide clues on the future of US interest rates.

The Index

The dollar index rose 0.15% to 104.78, with a session-low at 104.56.

The index rose 0.10% on Tuesday, the fourth profit in a row away from five-week lows at 104.08.

US Yields

US 10-year treasury yields rose 0.7% on Wednesday, bolstering investments in the dollar.

The gains came after bullish remarks by Fed officials, which boosted US 10-year treasury yields.

Fed official Christopher Waller said on Tuesday that he needs to see a few months of good inflation data before taking the step of supporting policy easing.

US Rates

The odds of a Fed 0.25% rate cut in July stood at 18%, and stood at 61% for September.

According to the Fedwatch tool, investors are expecting two 0.25% rate cuts this year by the FEd.

The Fed

The Federal Reserve is scheduled to release the minutes of its May meeting later today, at which it maintained interest rates unchanged at below 5.5%.

The Fed back then said it doesnt expect to cut interest rates until more confidence is gained about inflation moving towards the 2% target.

Fed Chair Jerome Powell said back then that he expects monetary policy to remain restrictive for sometime until inflation is confidently subdued.

However, he doesnt expect the next step in monetary policy to be a rate hike.