The dollar languished around three-week lows against a basket of currencies on Tuesday, as expectations faded that the U.S. Federal Reserve would hike interest rates as early as this month.
The single currency climbed to $1.1367 from $1.1363 in USA trade.
Meanwhile, upcoming data from China is seen to point to more weakness in the globe's second biggest economy, beginning with import and export figures to be released Tuesday, with a few investors getting very concerned that further economic turmoil could hamper a delicate global projection.
Futures markets pointed to a fall of around 0.5 per cent at the open on Wall Street.
Trade data from China were mixed, with exports beating forecast and imports below expectations doing little to dispel concern about a slowdown in China. Baku, Fineko/abc.az. Oil prices rose on Monday as the number of United States rigs fell for a sixth straight week, while investors waited for Chinese trade data to be published later this week for clues on demand at the world's top energy consumer.
Brent crude futures fell 5.3 percent on Monday, their biggest loss in about six weeks.
The Australian dollar also tumbled 0.8 percent against the Japanese currency, to 87.63 yen.
China's central bank expanded a scheme on Monday that increases banks' ability to lend, boosting the hope of more measures to support the economy - lifting mainland Chinese shares to seven-week highs.
Fed Governor Lael Brainard reinforced such expectations, saying late on Monday the Fed should hold off on any interest rate hike until it is clear that a global slowdown, difficulties in China, and other worldwide risks will not push the USA recovery off course. That's down about 1.6 percent from the all-time high reported in December, when crude oil prices were higher.
Market confidence is up because we are hearing the same message from everywhere that market is rebalancing, said Barnabas Gan, an OCBC oil analyst, identifying Asia, particularly China, as the main demand driver in the near term.
But it gave up those gains, trading 0.7 percent lower against the dollar and hitting a five-month low against the euro after United Kingdom inflation turned negative again.
The risk-off mood, fanned by a decline yesterday in crude oil prices, weighed especially on the Indonesian rupiah and the Malaysian ringgit.
Australia & New Zealand Banking Group Ltd warned of a false rally in Asian currencies on October 9, while Pacific Investment Management Co said this week it's standing by its pessimistic outlook on emerging-market currencies.
