The greenback remained trading lower in the European session despite some volatility in the market due to weaker-than-expected Chinese economic data.
Data released during the Asian session showed China's economy growing by 6.3% in the second quarter year-on-year, slower than expectations for 7.1% growth.
The missed-than-expected reading slightly affected risk-sensitive currencies, the Aussie and New Zealand dollars to drop from their five-week highs and five-month highs respectively.
Awaiting investors in the upcoming New York session is the State Empire manufacturing index data which is the main indicator of the health of the United States economy.
At the start of the European session, the US dollar remained in gloomy trading with the dollar index hovering at a 15-month low against a basket of major currencies.
The euro continued to strengthen at its highest level since February 2022, and the pound remained strong at its highest since April 2022 against the greenback.
Speeches by several European Central Bank (ECB) policy makers, including President Christine Lagarde will be the focus of investors in today's European session.
Meanwhile, the yen traded flat, hovering around a two-month high against the greenback.
The Canadian dollar was trading almost unchanged after paring last week's gains, amid lackluster Chinese economic data.
