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Pressure was back on the dollar on Wednesday, as nagging fears the Sino-U.S. trade war will drag on and severely hurt economic growth led to yet another slide in U.S. bond yields.
The dollar index against a basket of six major currencies stood little changed at 98.013 after dipping 0.1% overnight.
The greenback started on a shaky footing this week, but then recovered as safe-haven Treasury yields bounced from multi-year lows after U.S. President Donald Trump softened his tone against China and predicted the two countries would be able to reach a trade deal.
The dollar was a shade weaker at 105.680 yen after shedding 0.35 percent overnight, but still up from an eight-month low of 104.460 hit on Monday.
The euro was flat at $1.1091 after inching down 0.1% on Tuesday when it had managed to recoup some of the intraday losses on hopes that a snap election in Italy could be avoided.
The pound traded near a one-month high of $1.2310 scaled overnight.
The Australian dollar was almost flat at $0.6751, having lost 0.4% on Tuesday after Reserve Bank of Australia (RBA) Deputy Governor Guy Debelle said a weakening domestic currency was supporting the economy and that further falls would be beneficial.
Source : Reuters