The US dollar's strength was underpinned by better market sentiment after seeing an encouraging recovery in China's economic activity in February.
Widely surprising the market, the manufacturing PMI index reportedly rose to 52.6 in February, which was the highest reading since April 2021.
While the non-manufacturing PMI index in both the service and construction sectors jumped to 56.3, the highest since March 2021.
The yuan, the Aussie dollar and the New Zealand dollar were among the currencies that took advantage of the strengthening by rising higher in the Asian session.
The Aussie dollar initially hit fresh 2-month lows against the USD following dismal Australian fourth-quarter annual inflation and gross domestic product (GDP) data.
The giant US dollar reversed the price movement recorded in the New York session (Tuesday), with the dollar index trading at 104.48 against the main currency.
Dismal US consumer confidence data in February also curbed the greenback's further strengthening.
The release of US ISM survey manufacturing PMI data will be the next focus of investors in the upcoming New York session to determine the future direction of the US dollar.
In addition, the euro and the pound also showed gains, where pound trading was also pushed by the news of the agreement of the trade agreement between the European Union (EU) and the UK.
