The US dollar continued to retreat further from its 10-month high heading into the end of the week, September and the third quarter.
During the European session, the dollar index that measures the strength of the greenback traded at 105.70 against a group of major currencies.
The 10-year US treasury yield, which has previously supported the US dollar, also eased from a 16-year high.
Market movements are expected to remain volatile as today is the last trade for September and the end of the third quarter which could contribute to increased volatility.
The market is now awaiting the publication of US personal consumption expenditure (PCE) data, which is the main indicator of the Federal Reserve's (Fed) inflation choice tonight.
Following a strengthening US dollar and easing bond yields, the yen took advantage of the opportunity to recover from its 11-month lows.
Even so, the ninja currency remains under pressure as investors continue to expect intervention from the Bank of Japan (BOJ).
The euro continued its recovery to rise further from January lows against the US dollar even after being shown by Eurozone inflation data that fell in September.
While the recovery of the pound is seen to be limited, with the price stuck at around 1.22400 against the US dollar.
On the other hand, the Aussie and New Zealand dollars continued to rise further to trade stronger against the greenback.
