Wednesday saw the dollar hold muted versus the euro and rise versus the yen as it steadied following a steep selloff last week on growing optimism that the Federal Reserve has completed its cycle of interest rate hikes.

Additionally, as the Japanese yen strengthened above the 151 level versus the US dollar—its lowest level in a week—traders continued to be on the lookout for any intervention in the market.

In addition to making additional rate hikes less probable, many economists and experts predict that the U.S. economy will contract in the fourth quarter. This would hurt the value of the dollar, which has benefited from the United States' relative strength in relation to other major economies.

The dollar index that gauges the greenback versus its major pairs advanced by 0.05% at 105.58. Retreated at 1.4% the previous week, the lowest weekly drop since mid-July.

EUR/USD advanced by 0.02% to $1.0702.

GBP/USD dipped by 0.12% at $1.2283.

USD/JPY added 0.41% to 151.03 Japanese yen, heading back towards levels that have investors on watch for currency intervention. It hit a one-year high of 151.74 last week.