The US dollar declined slightly in the European session when all focus is now on the Federal Reserve (Fed) which will make its latest interest rate decision.
At the time of writing, the dollar index, which measures the greenback's strength against a basket of major currencies, was trading lower at 101.13.
Currency markets placed expectations for another hike of 25 basis points by the Fed, but were divided on the next hike.
Fed Chairman Jerome Powell will offer a hint on that in a follow-up statement after the decision.
If there is a change in the 'tone' of the central bank, it can induce 'crazy' market movements.
Looking at major currency trading, the euro recovered slightly from its previous decline to trade steady at around 1.1070 against the US dollar.
Investors are also looking forward to the European Central Bank's (ECB) policy meeting tomorrow, where it is expected to raise rates by 25 basis points.
Still, ECB President Christine Lagarde's speech could be the next clue to the central bank's future policy, not to mention amid a deteriorating European economy.
Meanwhile, the pound remained stable at around 1.2900 against the greenback after recording a strong daily gain on Tuesday.
On the other hand, Aussie and New Zealand dollar trading remained limited after Australian inflation data showed a decline and supported expectations for the central bank to ease its tightening.
The Canadian dollar also posted limited trading amid flat crude oil prices.
In addition, the yen also made gains following the depreciation of the greenback dollar. The International Monetary Fund (IMF) suggests Japan's central bank is gearing up for tightening.
