On Wednesday, the greenback remained close to multi-week lows against the euro and the pound after unexpectedly weak US inflation figures confirmed the Federal Reserve's decision not to hike interest rates today.

After the central bank cut interest rates, China's currency fell to its lowest level in six and a half months, and there is growing suspicion that additional stimulus may be introduced to aid the stuttering post-COVID economic recovery.

The dollar index that gauges the greenback versus its major pairs muted at 103.20, post hitting one-month low at 103.04.

With a 0.8% value loss over the past two weeks, the dollar index is on track for its biggest two-week decline in two months as investors come to believe that while the Fed may be nearing the end of its current course of rate hikes, other central banks still have further to go.

GBP/USD muted at $1.2607, post surging at 0.8% on Tuesday to the lowest level in one month at $1.2625.

USD/JPY dropped 0.2 to 139.90 yen.