The dollar edged lower against a basket of currencies on Wednesday but remained near the two-decade high touched in the previous session as traders awaited an interest rate decision from the U.S. Federal Reserve later in the session.
An ad-hoc European Central Bank policy meeting helped lift the euro modestly, keeping the pressure on the U.S. currency.
A hotter-than-expected U.S. inflation report on Friday has boosted expectations that the Fed will raise interest rates by more than previously forecast, helping knock investors' appetite for riskier assets, thereby lifting the haven dollar.