The US dollar fell on dovish comments from Fed Chairman Jerome Powell that raised expectations for a series of rate cuts by the end of the year.
Rising global risk sentiment and positive corporate earnings results also dampened demand for the dollar, while other major currencies such as the euro, yen and Australian dollar strengthened.
The euro was supported by the French government's move to suspend pension reforms, while the yen and Aussie were boosted by a strengthening Chinese yuan and increased Asian investment flows.
Markets are now expecting a quarter-point rate cut by the Fed in October and December, with more easing expected next year.
The Fed's cautious tone and signs of a global recovery are giving a new lease of life to risky assets, although risks from the trade war and the US government shutdown remain.
