The U.S. dollar traded higher against the most major currencies ahead of the Fed's interest rate decision. Market participants expect the Fed will cut its asset purchase program by another $10 billion. Market participants also speculate the Fed will start to hike its interest rate sooner than expected.

The U.S. consumer price index (CPI) declined 0.2% in August, missing expectations for a 0.1% rise, after a 0.1% increase in July.

On a yearly basis, the U.S. CPI decreased to 1.7% in August from 2.0% in July.

The U.S. consumer price index excluding food and energy was flat in August, missing expectations for a 0.2% increase, after a 0.1% gain in July.

On a yearly basis, the U.S. CPI excluding food and energy fell to 1.7% in August from 1.9% in July.

The NAHB housing market index jumped to 59 in September from 55 in August, exceeding expectations for a rise to 56.

The euro declined against the U.S. dollar. Eurostat said today consumer price inflation was revised up to an annual rate of 0.4% in August from a preliminary reading of 0.3%.

Eurozone's consumer price index excluding food, energy, alcohol, and tobacco costs increased 0.9% in August.

The British pound traded lower against the U.S. dollar. In the morning trading session, the pound increased against the greenback after the better-than-expected unemployment rate from the U.K. The unemployment rate in the U.K. fell to 6.2% in July from 6.4% in June, beating expectations for a decline to 6.3%. That was the lowest level since late 2008.

The average earnings index including bonuses increased 0.6% in the three months to July, beating forecast of a 0.5% rise, after a 0.1% decline in the three months to June. June's figure was revised up from a 0.2% drop.

The average earnings index excluding bonuses climbed 0.7% in the three months to July, after a 0.7% gain in the three months to June. June's figure was revised up from a 0.6% increase.

Two members of Bank of England's Monetary Policy Committee, Ian McCafferty and Martin Weale, voted for the second consecutive month to raise interest rates to 0.75% from 0.5%.

Scotland's independence referendum on Thursday continued to weigh on the pound.

The Swiss franc traded lower against the U.S. dollar. Swiss ZEW Economic Sentiment Index declined to -7.7 in September from 2.5 in August. That was the first negative reading since January 2013.

The New Zealand dollar traded lower against the U.S dollar after the current account data from New Zealand. New Zealand's current account deficit was NZ$1.06 billion in the second quarter, down from a surplus of NZ$1.41 billion in the first quarter. Analysts had expected the current account deficit of NZ$1.04 billion.

The auction on Fonterra's GlobalDairyTrade platform showed dairy prices rose from a two-year low.

The Australian dollar traded lower against the U.S. dollar in the absence of any major economic reports from Australia.

The Japanese yen dropped against the U.S. dollar in the absence of any major economic reports from Japan.