The dollar fell against the euro on Wednesday, after a Fed report that the U.S. economy is slowing down more, and signs from the central bank that a further cut in interest rates may be possible.

A Federal Reserve report called the 'beige book' said economic activity from October to mid-November grew at a reduced pace than the previous period. The report said that among its 12 districts, 7 reported a slower pace of economic activity, while the rest pointed to modest expansion or mixed conditions.

Speaking before the release of the report, Fed Vice Chairman Donald Kohn suggested that the Fed could be open to additional policy moves.

Uncertainties about the economic outlook are unusually high right now. In my view, these uncertainties require flexible and pragmatic policymaking -- nimble is the adjective I used a few weeks ago,

The Euro was at $1.4836 from $1.4846 late Tuesday at 5:20 p.m. in New York, while the dollar was at 109.91 yen from 108.60 yen.