The decline in the US dollar continued in the European session after the currency king was disappointed by a lower-than-expected reading of US inflation data.
Against most major currencies, the dollar index traded at a 2-and-a-half-month low of 107.68 earlier in the session.
The 7.7% increase in annual inflation in October led the market to think that price pressures in the country are easing and it has reached its peak of 9.1% recorded in June.
This in turn reinforces expectations for a slower interest rate hike from the Federal Reserve (Fed) at the next meeting which is as much as 50 basis points.
US dollar weakness continued to provide support for other major currencies to make gains, seeing the Aussie and New Zealand dollars trade at 2-month highs.
The euro was stronger at a 3-month high, trading higher at around 1.02470 against the US dollar.
Also strengthening was the pound which traded at its strongest level in 2 months despite mixed readings in UK economic data.
The latest data from the Office for National Statistics (ONS) saw gross domestic product (GDP) fall 0.2% in the third quarter but better than expected, and fell 0.6% in September.
On the other hand, the yen maintained its strengthening momentum at its strongest level in two months against the US dollar.
