USD fell against most of its major rivals in the European session on Wednesday, as investors awaited the Fed Chairman Jerome Powell's remarks on interest rate policy. The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, dropped 0.23% to 99.70.

Jerome Powell is set to give a remote speech to the Peterson Institute of International Economics at 13:00 GMT.

It is expected that, in his speech, the Fed Chair will address the unprecedented contraction in business activity in the U.S. and possibly push back on market expectations of negative interest rates to combat it.

The U.S. President Donald Trump raised the prospect of an introduction of such a tool, tweeting that the U.S. should accept the "gift" of negative interest rates, which is benefiting other countries around the world.

However, the latest comments of the Fed's representatives signaled that the policymakers were unlikely to take interest rates below zero to boost the economy, hit by COVID-19.