Investors were presented with a brisk end to May trading, seeing the US dollar suddenly strengthen and weaken.
In the New York session, the greenback initially fell following gloomy Chicago PMI data but rebounded to new highs after a stronger JOLTS report.
However, it plunged again after being affected by the statements of several Federal Reserve (Fed) policy makers as well as being affected by profit taking by the market at the end of the month.
Fed board member Philip Jefferson said a temporary halt in rate hikes would allow the central bank to see more data before extending tightening.
Also offering a similar statement, Philadelphia Fed President Patrick Harker advocated for a temporary halt to hikes at the June meeting.
Expectations for interest rates were lowered to a 30% chance from 70% following the statement.
As a result, the dollar index traded lower at around 104.20 against a group of major currencies in the Asian session.
Investors are now focused on the release of ADP employment data and manufacturing PMI before being shown the NFP data on Friday.
Following the depreciation of the USD, the yen continues to gain support to rise and bounce back from its lows.
The euro rose slightly after plunging to a fresh low following disappointing German inflation readings, while the pound traded stronger.
Meanwhile, the Aussie dollar and the kiwi remained lower after ending May trade with modest losses following disappointing China PMI data.
