The dollar was higher against most currencies during Wednesday U.S. trading, up from the lows seen yesterday.

On Tuesday the U.S. Federal Reserve decided to cut its benchmark federal funds rate by half a percentage point, down to 4.75 percent. The cut, however, sent the dollar lower as reduced interest rates decreased returns on dollar-denominated assets.

After the Fed's announcement Tuesday, the dollar index sank to 79.125, its lowest level since 79.10 on September 1992.

Late Tuesday, the Bank of Japan said it would keep its current policy of guiding the overnight call rate around 0.5 percent, leaving it with the lowest interest rates in the developed world.

The dollar was trading at 116.03 yen Wednesday, compared with 116.07 yen in late U.S. trading Tuesday.

The euro was at $1.3958, down from $1.3977 late Tuesday. On Tuesday, the euro climbed to $1.3987, its highest level since it began trading in January 1999.

The trade-weighted dollar index, which tracks the U.S currency versus six major currencies, was at 79.320, up from 79.170 late Tuesday.

The pound sterling was at $2.0010, down from $2.0119 late Tuesday.