Investing.com - The dollar moved lower against the other majors currencies on Wednesday, weighed by the release of disappointing U.S. retail sales data and as investors awaited the Federal Reserve’s policy decision due later in the day.
The U.S. Commerce Department said retail sales ticked up 0.1% in November, disappointing expectations for a 0.3% gain.
Core retail sales, which exclude automobiles, gained 0.2% last month, compared to expectations for an increase of 0.4%.
A separate report showed that the U.S. producer price index rose 0.4% in November, beating expectations for a 0.1% uptick.
EUR/USD rose 0.25% to 1.0651.
The Fed is widely expected to hike rates for the first time in a year on at the conclusion of its meeting later Wednesday.
The U.S. central bank will also announce updated economic forecasts and markets will be watching closely for signals on the outlook for inflation and the expected pace of rate hikes in 2017.
Investors remained wary amid concerns that the Fed could strike a cautious tone on the outlook for policy tightening next year.
Higher rates boost the dollar by making the currency more attractive to yield-seeking investors.
Elsewhere, GBP/USD gained 0.38% to trade at 1.2705.
Earlier Wednesday, the U.K. Office for National Statistics said the unemployment rate remained unchanged at an 11-year low of 4.8% in the three months to October, in line with forecasts.
The claimant count rose by 2,400 in November, compared to expectations for a increase of 5,500 people, and following an increase of 13,300 a month earlier.
Meanwhile, the average earnings index, including bonuses, rose by 2.5% in the three months to October, compared to forecasts for an increase of 2.3%.
Excluding bonuses, wages rose by 2.6%, beating forecasts for a 2.5% gain.
USD/JPY slid 0.27% to 114.88, while USD/CHF shed 0.22% to 1.0098.
The Australian and New Zealand dollars were stronger, with AUD/USD up 0.21% at 0.7516 and with NZD/USD gaining 0.32% to 0.7227.
Meanwhile, USD/CAD slipped 0.21% to trade at a fresh two-month low of 1.3102.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.25% at 100.83, the lowest since December 8.