Marking the last day for 2022 trading, the US dollar fell amid investor caution following volatile market movements.
The Asian session saw the dollar index, which measures the greenback's strength against most major currencies, trade weak at 103.90.
Developments regarding the Covid-19 situation in China continue to hover in the market by triggering various different reactions.
Earlier, financial markets were on alert after Italy reported that about 50% of passengers on two flights arriving in Milan tested positive for Covid-19.
However, Italy later confirmed that there were no findings of a new Covid variant in the tests.
Some western countries also rushed to introduce new regulations on Chinese tourists following concerns about the spread of the new epidemic.
Even so, the Wall Street market looked better in the New York session, causing the US dollar to sink and its weakness continued in today's trading session.
Following the weakening of the US dollar, the euro took the opportunity to rise to around two-week highs.
While the pound's gains were limited amid strikes in the UK, where 1,000 members of the Commercial and Public Service Union (PCS) are on strike for four days until New Year's Eve.
The Aussie and New Zealand dollars also rose following the decline in the US dollar, but were slightly lower in the Asian session today.
Overall, investors remain cautious amid volatile market movements following high volatility towards the end of 2022.
