The US dollar fell against a majority of rivals on Wednesday, on track for the first loss in 4 days, due to slow demand, following after weak data, ahead of the US industrial production data.
The dollar index fell 0.3% to 92.43 points, after opening at 92.67 points, and hit a high of 92.68 points.
The US dollar index gained less than 0.1% yesterday, in the third straight daily gain, thanks to strong safe haven demand after the US stocks fell.
The greenback's drop today comes on the back of weak inflation data in the US, which raised doubts about tightening the US monetary policy.
The data eased fears of rising inflationary pressures in the US, and led to a drop in the 10-year US Treasury bond yield, which fell more than 3% on Tuesday and hit a 3-week low at 1.263%.
Now investors await key US data on the output of the industrial sectors in the US during August, which accounts for 25% of the total US GDP.
At 13:15 GMT, the US industrial production index reading will be released, amid forecasts to rise 0.5% in August from 0.9% in July, and the capacity utilization rate is expected to reach 76.3% from 76.1%.