The dollar fell against major currencies on Wednesday, but the demand for it is supported on expectations of rate hike in the US before the end of the year.
The dollar is steady against the yen, USD/JPY pair being traded at 120.13.
The dollar got supported by the comments of Federal Reserve leadership, which confirmed the intention of the bank to start rising rates this year.
The heads of the St. Louis Federal Reserve Bank, James Bullard and Federal Reserve Bank of Atlanta, Dennis Lockhart, indicated in separate comments that the US central bank is still inclined to raise short-term interest rates this year.
Investors are preparing for a speech by Federal Reserve Chairman Janet Yellen, which could bring additional clarity regarding the last week decision of the bank to leave interest rates at current levels.
Meanwhile, markets remain cautious after data showed earlier that the index of purchasing managers in Chinese manufacturing by Caixin fell this month to 47.0 from 47.3 in August, while it was expected to grow to 47.5.
Weak data confirmed fears of slowing global economic growth.
Markets in Japan are closed for the third consecutive day on Wednesday due to a national holiday.
EUR/USD rose 0.32% to 1.1164, down from a 2.5-week low at 1.1105, reached earlier in the session.
Market research group - Markit said on Wednesday that manufacturing PMI in Germany fell to 52.5 in September, from 53.3 in the previous month, while the services PMI fell to 54.3 from 54.9.
The index of business activity in the manufacturing sector in France rose to 50.4 this month from 48.3 in August, while the services PMI rose to 51.2 from 50.6.
In the Eurozone the composite index PMI, including both manufacturing and the service sector, fell to 53.9 in September from 54.3 in August, according to Markit.
The dollar edged higher against the pound; GBP/USD pair dropped 0.35% to 1.5307, while the pair USD/CHF was traded at 0.9753.
The Australian dollar fell; AUD/USD fell 0.45% to 0.7057, while the pair NZD/USD went down by 0.09% to 0.6299.
USD/CAD fell 0.18% to 1.3248.
The USD index, which shows the relationship of the US dollar against a basket of major currencies, went down 0.13% to 96.37 after falling from a one-month high at 96.65, reached in the early afternoon.