The U.S. dollar lost ground against its major counterparts in the Asian session on Wednesday, as U.S. inflation fears eased after the latest data showed that the pick up in consumer prices was not swift enough to necessitate a policy change by the Federal Reserve.

Overnight data showed that U.S. consumer price index rose 0.6 percent in March after rising by 0.4 percent in February. Economists had forecast an increase of 0.5 percent.

Tuesday's inflation data came in only slightly higher than expected, validating accommodative stance from the U.S. Federal Reserve.

Philadelphia Fed Bank President Patrick Harker said on Tuesday that even though the economic situation is improving, recovery is still premature, and there's no cause to withdraw support yet.

Harker added that there were no signs of inflation running out of control.

Investors will be watching Fed Chairman Jerome Powell's speech at the Economic Club of Washington due later in the day.

The greenback declined to a 1-week low of 1.3800 against the pound and near a 4-week low of 1.1974 against the euro, off its prior highs of 1.3747 and 1.1943, respectively. The next possible support for the greenback is seen around 1.41 against the pound and 1.21 against the euro.

Reversing from its early highs of 109.07 against the yen and 0.9209 against the franc, the greenback depreciated to near a 3-week low of 108.75 and near a 6-week low of 0.9193, respectively. The greenback is seen finding support around 105 against the yen and 0.90 against the franc.

The greenback reached fresh 3-week lows of 0.7686 against the aussie and 0.7103 against the kiwi, down from its early highs of 0.7634 and 0.7044, respectively. If the greenback extends decline, 0.78 and 0.74 are possibly seen as its next support levels against the aussie and the kiwi, respectively.

The greenback edged down to 1.2529 against the loonie, after a rise to 1.2557 earlier in the session. On the downside, 1.22 is possibly seen as the next support level for the greenback.

Looking ahead, Eurozone industrial production for February is due in the European session.

U.S. import and export prices for March, as well as Fed Beige book report are slated for release in the New York session.