Investors are now gearing up for the release of US producer price index (PPI) data in the upcoming New York session, as the US dollar remains trading strong against its main rival.
Against the yen, the greenback hit a new high of 146.38 for the first time since August 1998.
Market players are awaiting the possibility of fresh intervention from Japan to stem the ninja currency's sharp fall.
Meanwhile, uncertainty in pound trading continues to be seen due to the issue of bond purchases by the Bank of England (BOE).
Governor Andrew Bailey initially said his emergency bond-buying program would end this Friday, but a recent report from the Financial Times suggests the BOE is signaling to banks that it may extend the program.
This left the pound currency trading weak at around two-week lows against the US dollar.
Meanwhile, UK gross domestic product (GDP) data published in the European session showed the economy contracted in August, raising the risk of a recession in the third quarter.
Additionally, most other major currencies including the euro, Aussie dollar and New Zealand dollar traded flat after recording losses in the previous session.
Investors are seen as more cautious ahead of the release of US producer inflation data which is expected to show an increase in September.
Not to be forgotten, the FOMC meeting minutes report will be published early in the morning which will be scrutinized by investors for further clues about the Federal Reserve's monetary policy.
