The US dollar continued to trade lower against its main rival, failing to capitalize on a better-than-expected reading of US manufacturing data from the ISM survey.
Despite registering a decline in July, the US manufacturing sector rose 52.8 above expectations for an increase of just 52.3 from 53.0 recorded the previous month.
A sharp fall in prices signaled that inflationary pressures are easing, but a drop in new orders added to concerns about the risk of a rising recession.
The 10-year US treasury yield continued to decline lower at 2.53% during the Asian session today, influencing the US dollar to remain weak.
Following the weakness in bond yields, the yen took the opportunity to rise by touching its latest high since mid-June against the greenback.
Turning to most major currencies, the euro is still holding on to gains following the weakness of the US dollar.
While trading the pound continued to be supported by the expectation that the Bank of England (BOE) will implement a rate hike of 50 basis points in its policy meeting on Thursday.
Before that, investors will focus first on the policy meeting of the Reserve Bank of Australia (RBA) which is expected to increase interest rates by half a basis point today.
The Aussie dollar eased slightly after rising higher ahead of the RBA policy decision, while the New Zealand dollar held on to gains at a one-month high against the USD.
