On Wednesday, the dollar lost significant ground after U.S. President Joe Biden and top lawmakers were unable to resolve the debt ceiling situation. However, currency movements were minimal due to investor caution prior the US inflation scheduled to release during the day.

Following discussions on Tuesday, Biden and Speaker of the House Kevin McCarthy were still at odds over lifting the $31.4 trillion debt ceiling for the United States. There are now just a few weeks left until the country would be compelled into an unprecedented default.

The probability that the Fed will maintain rates steady at its upcoming meeting in June is over 80%, and the money markets anticipate that rate reductions will start in July and last until the end of the year.

The dollar index that gauges the greenback versus its major pairs muted at 101.64.

EUR/USD ticked up by 0.06% to $1.0966.

GBP/USD dropped by 0.04% to $1.2617.

USD/JPY slumped by 0.1% to 135.32 per dollar.