The U.S. dollar was lower against its most major counterparts in the European session on Wednesday, as tame inflation data supported hopes for a Fed rate hike pause in coming months and as US Trade Representative Robert Lighthizer played down the likelihood of reaching a trade deal with China soon.

Data from the Labor Department showed that U.S. consumer price index rose by 0.2 percent in February after coming in unchanged for three straight months. The uptick in consumer prices matched economist estimates.

Core inflation slowed to 0.1 percent in February from 0.2 percent in January. Economists had expected a 0.2 percent rise in prices.

Speaking to the Senate Finance Committee, Lighthizer said that the U.S.-China trade talks may be in the "final weeks," but "major issues" still remained to be resolved.

Unless those issues are resolved in favor of the United States, a deal is unlikely to conclude, he added.

Investors await U.S. durable goods orders and producer prices due shortly for directional clues.

The currency traded mixed against its major counterparts in the Asian session. While it fell against the pound and the yen, it held steady against the euro and the franc.

The greenback fell to a 6-day low of 1.0053 against the franc, from a high of 1.0085 hit at 4:00 am ET. If the greenback falls further, 0.98 is likely seen as its next support level.

The greenback slipped to 1.3162 against the pound and 1.1303 against the euro, off its early highs of 1.3057 and 1.1277, respectively. The greenback is seen finding support around 1.33 against the pound and 1.14 against the euro.

The U.S. currency dropped to 1.3349 against the loonie, its lowest since March 6. The next key support for the greenback is seen around the 1.32 level.

The greenback retreated to 0.6845 against the kiwi and 0.7071 against the aussie, from its early high of 0.6830 and a 2-day high of 0.7049, respectively. The next possible support for the greenback is seen around 0.70 against the kiwi and 0.72 against the aussie.

On the flip side, the greenback appreciated to 111.39 against the yen, following a decline to 111.14 at 10:30 pm ET. The greenback is poised to find resistance around the 113.5 level.

Data from the Bank of Japan showed that Japan producer prices rose 0.2 percent on month in February.

That exceeded expectations for an increase of 0.1 percent following the 0.6 percent decline in January.

The U.S. producer prices for February, durable goods orders and construction spending for January are scheduled for release in the New York session.

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