Early trade in New York: dollar gains before Fed minutes, euro down

The dollar gained on Wednesday, sending the euro to a fresh two-year low ahead of the release of minutes from the US Federal Reserve's June meeting in thin liquidity as investors adjusted positions.
The Fed minutes, due for release at 2 p.m. EDT (1800 GMT), will throw more light on the central bank's plans after US policymakers expressed differing opinions on the need for more easing.
The euro was down 0.1 percent against the dollar at $1.2236, not far from the low of $1.2225 and analysts cautioned about a possible test of the June 2010 trough of $1.1875. The euro fell to a five-week low against the yen but recovered to trade 0.3 percent higher at 97.55 yen. The dollar recovered to trade 0.4 percent higher against the yen to 79.70 yen holding well above chart support at its 200-day simple moving average at 78.98.