The dollar hovered near a two-week trough against its major rivals on Wednesday after Chinese President Xi Jinping's promise to slash import tariffs eased concerns about a U.S.-China trade war.

Dollar index futures, a measure of the greenback’s strength against a basket of six major peers last stood at 89.27, trading within sight of its lowest levels since March 28.

On Tuesday, Chinese President Xi Jinping promised to open the country's economy further and lower import tariffs on products like cars. As a result, global equities rallied, and oil prices surged more than 3 percent on Tuesday as Xi's comments alleviated fears about the risk of a trade war between the world's two largest economies that could harm global growth.

The improvement in risk sentiment gave a lift to commodities-linked currencies and emerging market currencies and weighed on the U.S. dollar as well as the Japanese yen.

USD/JPY slipped below 107 to 106.97 overnight, giving back some of the 0.4 percent gain recorded on Tuesday as the Japanese currency slipped broadly. Given its safe haven currency status, the yen tends to attract demand in times of economic uncertainty and vice versa.

On Wednesday, forex investors will take its cues from U.S. consumer inflation data for March, as well as the minutes of the Federal Reserve's March meeting.

EUR/USD was steady above 1.2360, lingering near Tuesday's high of 1.2378, its strongest level since March 28.

The single currency had gained a boost on Tuesday after European Central Bank policymaker Ewald Nowotny told Reuters in an interview that its 2.55-trillion euro ($3.15 trillion) bond buying programme would be wound down by the end of this year, which would then pave the way for the bank's first rate rise since a fumbled move in 2011.

The euro then gave up some gains against the dollar on Tuesday after an ECB spokesman said Nowotny's comments about the future path of ECB rates do not represent views of the bank's rate setting Governing Council.