Investing.com - The dollar traded lower against a basket of major currencies on Wednesday, as upbeat economic data was overshadowed by an eagerly anticipated Federal Reserve interest rate decision due at 14:00 EDT.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, dipped 0.29% to 101.33 by 11:43 EDT.
The dollar trickled lower to trade at the lows in mid-afternoon trade, as traders seemed reluctant to initiate large positions in the greenback ahead of a crucial interest rate decision from the Federal Open Market Committee (FOMC).
According to investing.com’s Fed rate monitor tool, 95% of traders expect the FOMC to hike rates from 0.75% to 1%.
A fresh batch of top-tier U.S. economic data failed to inspire a revival in the greenback, as inflation data and U.S. retail sales matched forecasts.
The Labor Department said Wednesday, consumer prices rose 0.2% in February, while the Commerce Department said retail sales climbed 0.1%. Both consumer prices and retail sales were in line with forecasts.
Elsewhere, the pound bounced back against the dollar, after falling to a eight-week in the previous session, following news that the UK Parliament passed the Brexit bill, paving the way for the government to trigger Article 50, which formally starts the Brexit process.
GBP/USD gained 0.57% to $1.2222, after hitting a session high of $1.2256 before European markets opened for trade.
The EUR/USD added 0.32% to trade at $1.0638, as the single currency shrugged off political uncertainty in the region ahead of the Dutch parliamentary elections later on Wednesday.
Meanwhile, USD/CAD lost 0.20% to $1.3454 while USD/JPY slipped 0.19% to 114.56.