The rise of the US dollar came to a halt as the market entered the European session, seeing the king of the currency decline from its 20 -year high it had previously reached.
Investors' focus is now on the publication of US producer price index (PPI) data to be released during the New York session.
Having recorded a higher increase in consumer prices, PPI data is also expected to show a strengthening in May amid surges in energy costs and disruptions in the global supply chain.
Even so, the depreciation of the US dollar failed to be leveraged by other major currencies to rise following gloomy market sentiment.
The continuing surge in inflation and expectations of a bigger rise by the Federal Reserve (Fed) have made investors worried about the possibility of a global recession.
This pushed risk -sensitive currencies, the Aussie dollar and kiwi remained traded weaker at one -month lows.
The euro is trying to rise from its lowest level, with the price moving towards the level of 1.0500 against the US dollar.
The pound, meanwhile, remained lower after being weighed down by a lackluster reading of UK employment data in April, showing the first increase in the unemployment rate in a year.
This makes investors wonder what steps the Bank of England (BOE) will take at its policy meeting on Thursday.
