Risky sentiment dominated the market earlier in the week, pushing the US dollar to gain amid concerns over rising interest rates and heightened geopolitical tensions.
A strong reading in the US NFP jobs data released last Friday re-inforced market expectations to see a 75 basis point increase at the November policy meeting.
Investors are now looking forward to the release of US consumer and producer inflation data on Wednesday and Thursday to determine further expectations for the Federal Reserve's (Fed) monetary direction.
Meanwhile over the weekend, the world was rocked by an explosion that ignited a huge fire and damaged the main Kerch bridge, the only land link between Russia and Crimea.
In response to the incident, Moscow launched its aggressive offensive by raining missiles on Ukrainian cities on Monday, causing severe damage to communications and energy systems.
This in turn puts the market in a risky environment causing most major currencies to trade lower.
The Aussie and New Zealand dollars slipped back to 2-and-a-half-year lows as weak data from China added to the gloom for trading in the two risk-sensitive currencies.
In addition, the euro and the pound also fell back to around the lowest level due to the stronger US dollar and the energy crisis that is increasingly gripping Europe.
Despite rising against most other currencies, the yen weakened against the US dollar with the price moving back towards the 24-year lows it touched last month.
