The U.S. dollar was trading mixed against its major counterparts in the European session on Wednesday, after data showed that the U.S. consumer price inflation and retail sales rose in line with forecasts in February. The Federal Reserve wraps up its two-day meeting later in the day, with a quarter percentage point rate hike almost certain.

The Labor Department released a report showing a modest uptick in U.S. consumer prices in February, as a drop in gasoline prices partly offset increases in prices for food, shelter and recreation.

The Labor Department said its consumer price index inched up by 0.1 percent in February after climbing by 0.6 percent in January. The uptick in prices matched economist estimates.

Data released by the Commerce Department showed that U.S. retail sales rose modestly in February, with the uptick in sales matching economist estimates.

The Commerce Department said retail sales inched up by 0.1 percent in February after climbing by an upwardly revised 0.6 percent in January.

Economists had expected sales to creep up by 0.1 percent compared to the 0.4 percent increase originally reported for the previous month.

Investors focus on the FOMC decision, due at 2:00 pm ET, when the bank is widely expected to increase benchmark rate by 0.25 percent to a range of 0.75 percent - 1 percent. The Fed statement is likely to be watched for further clarity on the bank's interest rate plans for the rest the year.

Fed Chairwoman Janet Yellen will hold a press conference at 2:30 pm ET, when she will give an update on the U.S. economy.

The currency was trading lower in the Asian session, weighed by a fall in U.S. treasury yields.

The greenback that declined to 114.56 against the Japanese yen at 7:45 am ET rebounded modestly to 114.76 following the data.

Figures from the Ministry of Economy, Trade and Industry showed that Japan's industrial production declined less than initially estimated in January.

Industrial production fell 0.4 percent month-over-month in January instead of a 0.8 percent drop estimated earlier. It was the first decline in six months.

The greenback held steady around 1.0623 against the euro, after rebounding from a low of 1.0639 hit at 3:45 am ET. The pair was valued at 1.0604 when it finished Tuesday's trading.

European Central Bank Executive Board member Peter Praet said that euro area inflation is being driven by energy and food prices and underlying price pressures remain subdued, implying that there was no need for a change in the current monetary policy stance.

"Looking through recent volatility, the inflation outlook does not at this stage warrant a reassessment of the current monetary policy stance," Praet said in a panel discussion at the G-20 conference in Frankfurt.

Following a decline to 1.0074 against the Swiss franc at 4:05 am ET, the greenback rebounded to 1.0096 and held steady in the course of the trading session. The pair finished yesterday's trading at 1.0101.

After having fallen to a 9-day low of 1.2255 against the pound at 2:00 am ET, the greenback reversed direction shortly and held steady around 1.2196. At Tuesday's close, the pair was valued at 1.2153.

Data from the Office for National Statistics showed that the UK jobless rate fell to the lowest level since 1975 at the start of the year.

The ILO unemployment rate came in at 4.7 percent in three months to January versus 5.1 percent seen a year earlier.

The U.S. NAHB housing market index for March and business inventories for January are due shortly.

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