The euro pared losses versus the dollar on Wednesday after initially extending losses after the release of February's Fed statement. The U.S. dollar index has now erased most of the day's gains in the wake of the decision.
The Fed opted to leave rates unchanged.
Earlier, the U.S. dollar recovered some ground on Wednesday after stronger-than-expected U.S. private payrolls and manufacturing data, while lingering worries that the United States was poised to ditch its "strong dollar" policy limited gains.
The dollar gained as much as 1 percent against the yen, briefly recovering all of Tuesday's losses against the Japanese currency after the ADP National Employment Report showed U.S. private employers added 246,000 jobs in January and the Institute for Supply Management said its index of national factory activity rose to 56.