On Wednesday, the euro fell to near one-month lows against the dollar and the yen, weighed down by fears of a military conflict in Ukraine and ahead of the Federal Reserve's conclusion of a meeting that might signal increased monetary tightening.

The Bank of Canada is also expected to declare policy later in the day, and the Canadian currency strengthened 0.21 percent in Asian trade as traders worried about the outcome, with prospects of a rate hike regarded as finely balanced.

After topping $1.12640 overnight for the first time since December 21, the euro fell 0.07 percent to $1.12945. It was slightly changed at 128.69 yen, after touching 128.25 in the previous session, also a first since Dec. 21.

The majority of the market's anxiety was centered on the Fed, as traders anticipated signs on the timing and pace of interest rate hikes in the United States, as well as how the central bank plans to reduce its almost $9 trillion balance sheet, a process known as quantitative tightening (QT).

The first boost is expected in March, followed by three more quarter-point increases by the end of the year, according to money markets.

After soaring to 96.273 on Tuesday, its highest level since January 7, the dollar index, which measures the currency against six major peers, moved 0.06 percent higher to 96.030. From a two-month low on Jan. 14, it has rebounded as much as 1.74 percent.

Sterling GBP=D3 was unchanged at $1.3503 after falling to $1.3436 overnight, its lowest level in almost three weeks.

As for cryptocurrency, Bitcoin has stabilized at roughly $37,200. That follows a low of $32,950.72 at the start of the week, which was the lowest level since July. It has lost half of its value after reaching an all-time high of $69,000 in November.