On Wednesday, the U.S. dollar dipped slightly versus a basket of currencies as Federal Reserve Chair Jerome Powell's remarks on the central bank's continued battle to reduce inflation fell short of the more aggressive market expectations.

Even though the Fed had decided to leave interest rates steady at its meeting in June, new predictions suggested that by the end of the year, borrowing costs may still need to increase by as much as half a percentage point.

Although financial market indicators show skepticism that the Fed would continue raising rates after its July meeting, investors generally anticipate them to do so.

On Wednesday, the value of the pound fluctuated, first rising as statistics revealed that UK inflation increased more than anticipated in May, then falling as worries about the ability of the Bank of England to prevent the economy from stalling arose.

EUR/USD added 0.35% $1.0956.

USD/JPY advanced 0.4% at 142.015 yen.

GBP/USD ticked down 0.17% at $1.2741, close to the lowest level in one week.