The US dollar continued to slide lower as market focus now shifted to the release of the ISM survey manufacturing PMI data in the New York session.
Against a basket of major currencies, the dollar index traded at 105.45, near a one-month low.
Investors continued to shed their hold on the US dollar following the signal given by the Federal Reserve (Fed) to slow the rate of increase in interest rates.
The yen took advantage of this opportunity to rise higher to a six-week high against the US dollar.
The safe-haven yen was also supported by growth in the United States which showed contraction in the second quarter of the year.
Meanwhile, the dismal release of manufacturing data from China earlier in the week was seen to fail to influence major currency trading movements.
In contrast, risk-sensitive currencies the Aussie and New Zealand dollars rose higher to one-month highs against the greenback.
Focusing on Aussie dollar investors at the moment is the Reserve Bank of Australia (RBA) policy meeting which is expected to increase interest rates by 50 basis points.
Meanwhile, the euro and the pound also rose with each benefiting from the weakness of the US dollar.
