On Wednesday, euro fell to session lows against the dollar and the yen after data showing that the August inflation rate in the Eurozone has been revised downwards, added to concerns that the European central bank may expand its stimulus program.
The EUR/USD hit a low of 1.1231 after 1.1255 prior to data publication, while EUR/JPY is traded at 135.21, losing 0.38% today.
The euro began to decline after Eurostat said that the final value of the annual inflation rate of euro has been revised to 0.1% from the initial estimate of 0.2%.
Core inflation, which excludes food and energy, remained unchanged at 0.3% in monthly terms and at 0.9% in annual terms.
Weak inflation data raised concerns that the ECB may extend the scope of its monthly program of quantitative easing, which equals € 60 billion.
Earlier this month, the Central Bank cut its forecast for inflation at the last meeting, citing pressure from the strong euro and weak oil prices.
The ECB now expects annual inflation in 2015 at 0.1%, instead of the previous forecast of 0.3%.
Earlier on Wednesday, Reuters reported that the European Central Bank Vice President, Vitor Constancio, said that the bank has the opportunity to increase asset purchases, as the current size of its quantitative easing is small relative to similar schemes in other central banks.
Meanwhile, the index of USD, which measures the strength of the US dollar against a basket of six major currencies, rose 0.12% to 95.87 due to weakened euro. The dollar is traded in recent ranges as investors await the outcome of the two-day meeting to determine the monetary policy of the Fed, which starts later today.
Investors took a wait amid uncertainty whether the Fed will be decided to increase on Thursday interest rates for the first time in nearly a decade. Rising interest rates will boost the dollar, making it more attractive for investors looking for profit.
Later today, the US will release data on consumer inflation.
Last American statistics indicated that inflation remains at low levels due to low oil prices and the dollar has strengthened, despite the fact that the labor market has shown strong recovery, and the economy shows growth in five consecutive quarters.
The Fed chief, Yellen, stated that increasing interest rates depends on the economic indicators, however, she also pointed out that the bank plans to raise interest rates before the end of this year.