The dollar was able to recoup its losses against most of its global counterparts on Wednesday, following the release of strong economic data from Europe and the UK as well as a slowdown in US economic growth.
US business activity fell to a four-month low in April, with the S&P Global Manufacturing Index falling to 50.9 from 52.1 in March.
The US Dollar Index (DXY), which tracks the greenback against six major currencies, rose 0.13% to 105.8.
EUR/USD and GBP/USD fell 0.07% and 0.12% to 1.0691 and 1.2433, respectively, despite an S&P Global survey showing a significant increase in business activity in the UK and the Eurozone.
Huw Pill, the Bank of England's chief economist, said earlier that there is still a long way to go before interest rates are cut, Reuters reported.
The USD/JPY was up 0.05% at 154.90, approaching the psychological 155 level, which traders believe will be a reason for Japanese authorities to intervene.
Japanese Finance Minister Shun'ichi Suzuki reiterated Tokyo's determination to intervene if the yen continues to fall.
"If currency intervention fails, it could have a significant impact on the credibility of the Japanese authorities," points out Jane Foley at Rabobank.
Meanwhile, AUD/USD and NZD/USD rose 0.32% and 0.13% to 0.6506 and 0.5938, respectively.
Data from the Australian Bureau of Statistics showed that consumer prices in the country rose a seasonally adjusted 1.0% in the first quarter of the year. This beat expectations for a 0.8% increase. On an annualized basis, inflation rose 3.6%, beating forecasts for a 3.4% increase.
The data tempered market expectations for an interest rate cut by the Reserve Bank of Australia in the near future.
"This outperformance probably rules out any chance of an RBA cut this year," said James Kniveton of Convera.
"The Australian dollar has benefited from a repricing of the RBA's monetary policy path," he added.
See also: Active ETH buying by whales contributes to token price growth