The dollar slid on Wednesday, as a surprise decline in U.S. inflation last month tempered expectations that the Federal Reserve would raise interest rates at this week's monetary policy meeting.
The greenback had traded higher before the U.S. data, underpinned by lofty U.S. Treasury yields in the wake of upbeat consumer spending data on Tuesday.
But the unexpected 0.1 percent decline in U.S. consumer prices in August, the first since January, wiped out the dollar's gains.
As a result, rates futures traders lowered bets on a potential interest rate increase on Thursday. Following the inflation data, traders placed just a 21 percent chance that the U.S. central bank would end its near-zero interest rate policy on Thursday, down from 27 percent late on Tuesday, according to CME Group's FedWatch program.