Dollar loses gains amid Fed Beige Book release

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The U.S. dollar traded lower across the board on Wednesday after Federal Reserve officials painted a mostly uninspiring picture in their latest economic assessment, calling growth overall "slight" or "moderate" across most of the country.

Overall, the Fed's 12 districts did report strength in real estate and housing. However, manufacturing in recent days has been "weak" and retail sales "mixed," according to the latest Beige Book account.

The dollar index, which measures the greenback against a basket of six major currencies, was last down 0.36 percent at 98.38.

The euro was last up about 0.3 percent at $1.0678 against the greenback after hitting a session low of $1.05710. The dollar was last down 0.23 percent against the yen at 119.19 yen and about 0.80 percent lower against the Swiss franc at 0.9652.

Earlier, the greenback had rebounded versus the euro amid the European Central Bank's reiteration of its dovish stance on monetary policy.

The European Central Bank has no plans to curb or curtail its money-printing program, although it expects the euro zone economic recovery to broaden and strengthen. ECB President Mario Draghi said he was surprised at speculation about exiting the program early since it was only a month old.

The comments were "negative for the euro because Draghi reaffirmed the QE (quantitative easing) program, despite some talk that the ECB might need to curb it in reaction to stronger data," said Vassili Serebriakov, currency strategist at BNP Paribas in New York.

Retail sales stronger than they appear?

The ECB's asset-buying program of 60 billion euros a month of new money, which the central bank started last month, has a weakening effect on the euro.

The euro pared losses, however, and the dollar slipped against the Japanese yen, after data showed U.S. industrial output fell 0.6 percent in March, more than an expected drop of 0.3 percent.

The data followed an earlier reading on Wednesday showing manufacturing activity growth in New York State unexpectedly contracted in April, weakening for a third straight month as the pace of new orders fell to a multi-year low, according to the New York Fed's Empire State general business conditions index.

The selling pressure on the dollar was limited as traders maintained the view that the Federal Reserve would hike rates this year despite the weaker data. A rate hike from the Fed is expected to drive the dollar higher by boosting investment flows into the United States.

"The data hasn't been weak enough for long enough for expectations that a Fed hike is in the cards to change, so any dollar weakness is being bought into," said Douglas Borthwick, managing director at Chapdelaine Foreign Exchange in New York.

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—CNBC's Jeff Cox contributed to this report.