The United States dollar lost footing on Wednesday against a basket of world currencies, dropping as much as 1% against the euro, as the latest data showed that inflation in the country cooled, spurring hopes that Federal Reserve's interest rate cuts might come on the agenda soon.
Later today the US central bank will be revealing its next monetary policy step. At the June meeting, the Fed is largely expected to keep its interest rates steady.
At 10:38 am ET, the euro traded 1% above the dollar, going for 1.08478. At 10:45 am ET, the pound advanced 0.81% against the greenback, selling at 1.28436. At 10:49 am ET, the dollar lost 0.84% against the yen, changing hands for 155.80200.
