Weaker jobs numbers, due to be released on Friday, could instead cement a case for later action - a pre-announcement in November with a formal decision in December
The US currency was underpinned by data, released on Thursday, showing US producer prices posted their largest annual increase in more than a decade in the 12 months through July
The dollar index, measuring the greenback against a basket of six currencies, was 0.27% higher at 90.036. The index hit a four-month low earlier in the session.
"We continue to expect the USD to remain soft while US yields remain contained," Osborne said.