The dollar rose on Wednesday as a fall in oil prices pushed investors to reduce their euro holdings and temporarily abandon expectations for a weakened dollar.

The dollar rose to $1.4680 from 1.4802 late Tuesday. The dollar was virtually flat versus the yen at 106.93 yen from 106.94. The Euro was at 156.60 from 158.27 yen.

Demand for oil on the New York Mercantile Exchange waned, sending crude down below $90 per barrel. A U.S. government report indicated crude inventories fell more than expected.

The dollar also gained against the yen, reaching 106.93 yen per dollar.

Not helping the euro were comments by European Central Bank council member Yves Mersch, who said that banks should be cautious as risks to economic growth will rise, according to Bloomberg.