The greenback muted on Wednesday as traders anticipate Fed’s meeting to find more hints on the central bank’s rate projection.

Last week's data revealed persistent U.S. inflation, which caused investors to reevaluate their predictions that the Fed would begin lowering rates in March. Compared to March at the beginning of the year, markets are now factoring in the first cut in June.

Traders are already factoring in 94 basis points (bps) of further stimulus from the Fed this year.

The vast majority of Reuters-surveyed analysts believe that the Fed will lower interest rates in June.

Eyes are on Fed’s meeting scheduled to release later during the day that will indicate more clues on the interest rate trajectory.

The US dollar index that gauges the greenback versus its major pairs ticked up by 0.1% to 104.17, post edging down on Tuesday amid plunge in global bond yields.

EUR/USD slumped by 0.1% to $1.0795, ahead euro zone consumer confidence survey scheduled later in the day.

GBP/USD edged down by 0.1% to $1.2604, a bit close to Tuesday’s one-week hike of $1.2668.