USD depreciated against other major currencies in the European session on Wednesday as investors awaited the announcement of the Federal Reserve’s monetary policy meeting (due at 18:00 GMT) and a press conference of its Chairman Jerome Powell (due at 18:30 GMT).

The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, dropped 0.16% to 92.90.

The Fed is widely expected to leave its key interest rates and reaffirm its new, more tolerant stance on inflation, which was introduced by Chairman Powell in August and implies that rates will be kept low for a longer period.

Investors will also pay close attention to the Fed officials’ fresh economic projections. The policymakers are likely to acknowledge the latest improvements in the U.S. economy, particularly in employment, wages and business activity, but remain cautious in their new growth forecasts, reiterating that the road to recovery will be long and bumpy.