The US dollar remained subdued in the European session as investors avoided risk-taking ahead of Wednesday's US inflation data.
Compared to most major currencies, the greenback dollar traded lower while the 10-year US bond yield remained flat at around 2.77%.
Commodity-related currencies were among those benefiting from the situation, with the Aussie, Canadian and New Zealand dollars trading higher despite the gloom in crude oil trading.
Meanwhile, citing a survey made by the Institute for Employment Research (IAB), the German economy is expected to lose more than $260 billion in added value in 2030 due to high energy prices and the ongoing war in Ukraine.
However, the euro brushed aside those concerns by trading higher against a gloomy US dollar.
The pound traded slightly higher even though Bank of England (BOE) policy maker Dave Ramsden said he did not rule out the scenario that recession forecasts by the central bank could prompt it to reverse course on interest rates next year.
As no high-impact data will be released today, the US dollar is expected to remain weak as investors remain cautious while awaiting the release of US consumer price data.
