The US dollar was little changed on Wednesday after surging the previous day, with better-than-forecast growth in China helping to dampen the dollar's gains.
An explosion at a hospital in Gaza caused the currency's movement to fluctuate slightly and traders were wary of the possibility of a wider conflict between Israel and the Palestinian militant group Hamas.
Official data showed China's economy grew by 1.3% in the third quarter, up from 0.5% in the previous quarter and beating market forecasts of a 1% increase. Industrial production increased and unemployment decreased.
The US dollar index was slightly higher at 106.16 against six major currencies. It has strengthened by 0.53% on Tuesday but is still below its eleven-month high of 107.34 last week.
China's yuan hit a one-week high of 7.2905 per dollar, though later retreated to 7.316. China-sensitive Australian and New Zealand currencies also rose before paring their gains.
The euro was down 0.34% at $1.0537, while sterling was steady at $1.2179 after data showed British inflation failed to fall as expected in September.
Since mid-July, the yield on 10-year US debt securities has risen by about 100 basis points and the dollar index has rocketed around 7% as the US economy shows no signs of slowing down.
The yen was last slightly higher at 149.68 against the US dollar. The Bank of Japan on Wednesday announced a surprise bond purchase of $2 billion to curb downward pressure on yields.
The 150 yen mark has become an important psychological level after previous government interventions to support the Japanese currency took place around that level. In early October, the yen made a significant rally after dipping below 150, although it later fell again and early indications were that Japan was not intervening.
