The US dollar continues to trade stronger after going through a 'chaotic' trading session at the opening of 2023 trading.
The greenback jumped more than 1% overnight in the European session and continued to strengthen in the New York session, seeing most major currencies plummet.
However, the previously recorded gains were reduced in the Asian session, where the dollar index was slightly down 0.2% at around the price of 104.46.
Among the worst affected currencies was the euro which recorded its biggest daily drop since October to a 3-week low against the US dollar.
Meanwhile, the pound currency is not expected to be more resilient by trading stable in the Asian session after experiencing volatile fluctuations in the previous session.
Tracking commodity-related currency movements, the Australian and New Zealand dollars are each trying to bounce back from the previous session's lows.
However, the gloomy outlook for China's economy and Covid-19 limited the movement of the two risk-sensitive currencies.
Meanwhile, the Canadian dollar has unfortunately failed to bounce back after being dragged down by the decline in crude oil trading.
Investors are now turning their attention to the publication of the minutes of the FOMC policy meeting early Thursday morning (3.00am Malaysian time).
Before that, investors will first be shown the release of the ISM survey manufacturing PMI data and the US JOLTS job opening in the New York session.
