The US dollar's weakness continued in Wednesday's trading session, with the currency king sliding to a one-month low against its main rival.
Investors continue to focus on the US midterm elections, the results of which will determine control in Congress.
The outcome of the election will take several days, during which it could have an impact on the US dollar if the Democrats led by President Joe Biden are unable to retain control of both the House of Representatives and the Senate.
In addition to the election, investors are also looking forward to the release of US inflation data on Thursday which is expected to decline to 6.5% year-on-year in October.
Following the greenback's decline, the euro capitalized to surge stronger to a one-month high.
It was also supported by German bond yields following the expectation of further tightening by the European Central Bank (ECB) to continue raising interest rates.
ECB President Christine Lagarde stressed that they need to return inflation to the 2% target, while policymaker Villeroy de Guindos also backed up, saying the central bank should continue to raise rates until core inflation clearly peaks.
Meanwhile, the pound also maintained its strengthening momentum to trade stronger around the one-week high against the greenback.
