The US dollar strengthened to a six-month high on Wednesday after being driven by risk-on market sentiment following concerns over global growth, particularly China.
Against most major currencies, the dollar index, which measures the greenback's performance, traded higher at 104.85 during the Asian session.
China's services activity expanded at the slowest pace in eight months in August, weighed down by weak demand.
While the final reading for the European Zone's economic data remained unchanged, business activity fell into contraction, suggesting the bloc could be in recession.
The streak, most of the currencies slipped lower in the European session and continued into the Asian session today.
This weakness was reflected in the trading of the euro and the pound which fell further to the weakest level in three months against the US dollar.
While the Aussie and New Zealand dollars also sank to nine-month lows, while the Canadian dollar was the weakest in six months against the greenback.
The decision of the Reserve Bank of Australia (RBA) on Tuesday saw the central bank decide to keep its interest rate unchanged at 4.10%.
Despite gains against other currencies, the yen fell further against the greenback to its latest weakest level since November 2022, trading around 147.70 today.
The yen was also weighed down by higher US 10-year bond yields, rising at 4.22% after the bond market reopened from a long holiday weekend.
Market focus now shifts to the Bank of Canada (BOC) policy meeting and the release of US service PMI data in the New York session.
