The greenback strengthened on Wednesday as U.S. consumer inflation remained strong in January, while sterling plunged as a result of a decline in the U.K. CPI rate.

The dollar index that gauges the greenback versus its major pairs inched by 0.3% at 103.457.

US consumer inflation surged above projections at 6.4% YoY, where expectations hovered around 6.2%, meanwhile the YOY core figure that excludes food and energy was 5.6% higher than the earlier expected 5.5%.

EUR/USD dropped 0.2% to 1.0709 as a result of dollar purchasing before Christine Lagarde, president of the European Central Bank, gave a statement.

GBP/USD was spurred by the annual headline rate of inflation in the UK that slumped to 10.1% in January from 10.5% the previous month, the pair declined 0.6% to 1.2094. 

USD/JPY traders are still processing Kazuo Ueda's candidature to be the next governor of the Bank of Japan, which caused the stock to rise 0.2% to 133.32.