The euro saw weakness on Wednesday in New York in trading versus other majors. The currency came under modest pressure on tame inflation data amid indications the European Central Bank may not cut rates lower than 1%.

The euro slipped further away from the near-term low recently reached against the dollar. The single currency fell to near 1.3150 in morning trading after hitting as high as 1.3390 earlier in the week.

On the economic front Wednesday morning, the Labor Department said its consumer price index edged down 0.1 percent in March following a 0.4 percent increase in February. The modest decrease came as a somewhat of a surprise to economists, who had expected prices to edge up 0.1 percent.

The European currency fell to its lowest level in more than seven weeks against the British pound, slipping to 0.8785. The euro has been trending lower for 2 1/2 week low.

House prices in the UK dropped 12.3% year-on-year in February, after falling 11.5% in January, a report by the Department of Communities and Local Government said.

The euro slipped to a two-week low of 129.91 against the Japanese yen but turned modestly higher through the morning.

In economic news, the Governing Council member of the European Central Bank, Axel Weber said there is still a little room to cut the main refinancing rate, but it should not go below 1%. In a speech in Hamburg, Weber said if the interest rate falls below 1%, banks will have no incentive to lend to each other, paralyzing interbank lending.

Germany's Federal Statistical Office said in a report that the wholesale price index or WPI dropped 8% year-over-year in March, after falling 5.7% in February. Economists had predicted a decline of 7.1% for March. The wholesale prices in March showed the strongest annual decline since January 1987, the agency said.

Spanish consumer prices slid 0.1% on a yearly basis in March, which was the first decline since the series started in 1961, the National Institute of Statistics or INE said. The decline in March matched economists' expectations. In February, consumer prices were up 0.7%.

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