Risky sentiment encouraged the US dollar to record moderate gains as markets await mid-term election results and the release of US inflation data.
Examining the movement of the king of currencies in the previous session, the greenback dollar rose slightly following reports on the Covid-19 outbreak in China which triggered risks in the market.
The spread of the coronavirus in the city of Guangzhou is worsening, with the second district subject to lockdown measures on Wednesday.
This can be seen in the depreciation of risk-sensitive currencies Aussie and New Zealand dollars which retreated from one-month highs against the US dollar.
Also supporting the US dollar as a safe-haven is the uncertainty that plagues the crypto market which has seen a sharp fall in all cryptocurrencies following the FTX and Binance issues.
Investors are now awaiting the release of US inflation data in the upcoming New York session which is expected to show a decline to 6.5% year-on-year in October.
In addition, the market is also following the current developments in the American elections which, as of 9.40 am, saw the Republicans leading in the House of Representatives and the Senate (according to the Wall Street Journal).
Meanwhile, the pound also fell again following the revival of the US dollar, seeing it trade at 1.13800 in the Asian session.
The euro, on the other hand, is struggling to maintain its position at the $1 parity price level, amid investor confidence that the European Central Bank (ECB) will continue to raise interest rates.
