The dollar plunged on Wednesday following the release of disappointing economic data, and stayed down after the Fed decision.
The US dollar index was down by 0.5% at 96.52 at 2:08 p.m. ET. Earlier, it was down by as much as 0.7% at 96.34, its lowest level since October 6, 2016.
Consumer prices fell more than expected in May, according to the Labor Department.
The consumer price index dipped 0.1%, missing expectations of a flat reading, and rose by 1.9% year-over-year. Excluding volatile food and energy costs, core CPI rose by 0.1% last month, less than expected.
US retail sales also disappointed. Sales fell 0.3% in May, below expectations of them holding flat. Excluding gas and auto sales, retail sales were unchanged that month, which was also below expectations.
The data crossed the wires ahead of the end of the Fed's two-day meeting. The FOMC announced at 2 p.m. ET it decided to raise rates, signaling that it believes the economy is healthy enough to withstand tighter financial conditions.