On expectations that Fed would soon be lowering rates, the value of the greenback edged up on Wednesday after hitting its weakest level in almost three months.

On Tuesday, U.S. bond yields and the currency fell following remarks made by Federal Reserve director Christopher Waller that suggested a potential rate drop in the coming months.

Since bond yields and prices are negatively correlated, lower bond yields make fixed income investments in a nation appear less appealing than those of its counterparts, which puts pressure on the local currency.

The dollar index that gauges the greenback versus its major pairs touched its weakest level since the beginning of August 102.46.

EUR/USD surpassed $1.10 for the first time since August on Tuesday nevertheless reducing gains and barely changed at $1.0991.

On Thursday, the inflation rate for the entire euro zone is expected to be released, ahead of the PCE, the Fed's favored indicator of inflation in the United States.

November saw a steady easing of pricing pressures in the euro zone, according to inflation data from North Rhine-Westphalia, Germany, and Spain.

USD/JPY was unchanged at 147.37 yen following its descent to a low of 146.68 yen more than two months ago.