Attention in Asia has focused on China, where the yuan extended losses at a time when markets are still digesting the impact of credit rating agency Moody's downgrading the Asian giant's outlook.

Price movements

The dollar index, which measures the greenback's performance against six rival currencies, fell 0.029 percent to 103.93, after rising 0.3 percent overnight.

The index has risen 0.5 percent this month, after falling <> percent in November in its biggest monthly decline in a year.

Data on Tuesday showed U.S. jobs fell to their lowest levels in more than two-and-a-half years in October, the strongest sign yet that higher interest rates are weakening labor demand.

The data also showed 1.34 vacancies per unemployed in October, the lowest level since August 2021.

The offshore yuan fell 0.11 percent to 7.1647 per dollar, a day after Moody's downgraded its outlook for China's credit rating to "negative".

Reuters reported that major Chinese state-owned banks boosted the dollar sell-off after Moody's statement on Tuesday and continued to sell the dollar on Wednesday morning.

The euro rose 0.02 percent to $1.0797 after falling to a three-week low of 1.07785 on Tuesday.

Investors believe the ECB could make its first rate cut by March.

Eurozone inflation fell more quickly than most observers expected.

Sterling was last at $1.261, up 0.13 percent on the day.

The Japanese yen settled at 147.14 per dollar.

The Australian dollar rose 0.53 percent to $0.659 and the New Zealand dollar gained 0.62 percent to $0.617.

Among cryptocurrencies, Bitcoin fell 0.69 percent to $43591,23.44 after increasing to more than $<>,<> earlier in the session.