The dollar traded lower against the euro on Wednesday after the Federal Reserve said U.S. economic growth remained tepid.
Economic activity expanded at a "modest" to "moderate" pace over thepast few months, the Fed said in its Beige Book report Wednesday.
While the effect of lower gas prices remains mixed, consumerspending did rise in most areas. Commercial and residential real estate pricesare higher and loan demand is on the rise as well.
Earlier, the greenback hit its lowest against the euro in over two weeks after the European Central Bank kept monetary policy steady despite recent market volatility and Bund yields extended their rise.
The ECB sees no reason to adjust its monetary policy stance in response to a recent rise in bond yields in Europe, ECB President Mario Draghi told a news conference after the bank held interest rates as expected.
"The ECB's not currently considering trying to increase monetary policy stimulus. They're not worried about volatility," said Brian Daingerfield, currency strategist at the Royal Bank of Scotland in Stamford, Connecticut.