The dollar index fell to 101.3 on Wednesday, approaching again levels not seen in near a year, after the US inflation rate unexpectedly continued to decline to 4.9% in April and the annual core rate edged lower to 5.5% as expected.
The CPI data increased bets the Fed will pause rate hikes in June.
The dollar also came under pressure from ongoing negotiations over the US debt ceiling, after a meeting between President Joe Biden and congressional leaders late on Tuesday yielded little progress.