The dollar weakened on Thursday following an overnight drop in U.S. Treasury yields, though moves in foreign exchange markets were far more contained than the global rout in stocks.
Risk appetite broadly remained robust in currencies, with the Aussie and kiwi the rallying by half a percent each against the greenback.
Against a basket of its rivals, the dollar fell a quarter of a percent to 95.17. It has fallen 1 percent in the last two trading sessions and is holding at its lowest level since the start of October.
U.S. inflation data for September is due later in the day with market expectations at 0.2 percent on a monthly basis.
Yields on 10-year U.S. Treasury debt ticked six basis points lower to 3.16 percent though similar gauges in currency markets such as the Japanese yen and the Swiss franc were broadly steady.
The euro edged a fifth of a percent higher to $1.1541 on broad dollar weakness, though widening yield spreads between Italian and safe-haven German debt capped gains.