On Tuesday, the dollar fell against a basket of major currencies, while the pound jumped after the release of positive statistics of UK inflation.
Investor sentiment remained cautious after a sharp drop in Chinese stocks on Tuesday, renewing fears that China may allow the Yuan to further easing after the devaluation last week.
The dollar fell against the safe havens of the yen and the Swiss franc, retreating from recent highs amid growing demand for shelter.
Sterling strengthened on news of rising inflation in the UK, increasing the pressure on the Bank of England that it raised interest rates.
GBP/USD pair rose 0.53% to 1.5669, the peak from July 1, from around 1.5598, on the eve of the data release.
The UK Consumer Price Index rose in July by 0.1% in annual terms, after falling to zero in June. Economists had expected no change.
Core inflation, excluding energy and food, rose to five-month high of 1.2% last month from 0.8% in June, pointing to growing inflationary pressures.
The euro was little changed against the dollar, but fell to a one-week low against the pound: 0.747.
The single currency also weakened against the Swiss franc; EUR/CHF fell to 1.0811.
The US dollar strengthened against the Canadian rival, USD/CAD pair increasing by 0.18% to 1.3104, as the Canadian dollar came under pressure from falling oil prices.
The Australian dollar fell to 0.7353.
Last week the Australian currency has collapsed to a six-year low 0.7214 following the fall of the Yuan before the recover, after China's central bank ensured that the further devaluation of the national currency has no reason, given the strength of the main economic indicators.
The New Zealand dollar rose to 0.6518.
The USD index, which tracks the US currency against a basket of six major rivals, is still traded at 96.8, retreating from a one-month low last week 95.94.
Investors are preparing for the publication of data on the US housing sector for fresh signals on the eve of the release of Federal Reserve reports on Wednesday.
The minutes of the July meeting of the Federal Reserve are expected to clarify the plans for raising interest rates for the first time since 2006.