Heading into the European session, the US dollar continued to gain support to trade at record highs amid market concerns over China's economy.
Chinese authorities continued to try to save the yuan, which fell to a 9-month low, by setting a higher peg for the currency today.
The problems of the world's second-largest economy are deepening, with real estate developer Evergrande seeking Chapter 15 bankruptcy protection in a New York court on Thursday.
Beijing has so far refrained from rolling out massive stimulus even as most of its economic data points to continued weakness.
This caused investors to turn to the US dollar as a hedge, which was also supported by expectations for continued tightening by the Federal Reserve (Fed) in the fight against US inflation.
Risk-sensitive currencies, the Aussie and New Zealand dollars continued to weaken at 9-month lows against the greenback.
Meanwhile, the euro remains at its weakest level in two months, pressured by a much stronger US dollar.
The pound eased back from earlier gains after being hit by a slumping UK retail sales reading in July.
The Canadian dollar continued to suffer at a two-month low amid weaker crude oil trading.
The yen, on the other hand, found some support to rise today, but remains on track for a second straight weekly loss this week.
Investors are now focusing on Federal Reserve (Fed) Chairman Jerome Powell's speech in Jackson Hole next week (Friday, August 25).
