The dollar index, which measures the greenback against six major currencies, held steady at 106.51, just below the previous session’s peak of 106.55, the strongest since Monday last week.
The euro, the most heavily weighted currency in the dollar index, was little changed at $1.0158 after hitting its lowest level since Aug. 5 at 1.0154.
The pound was down 0.1% at $1.2040, its lowest level since August 5.
Against the yen, a sought-after safe haven currency, the dollar fell 0.09% to 133.19.
The global security supply has been boosted by a series of weak global economic indicators. Data showed on Monday that US single-family homebuilder confidence and factory activity in New York state fell in August to their lowest levels since the start of the COVID-19 pandemic.
This followed surprisingly weak Chinese activity data, covering industrial production, retail sales and fixed asset investment, as the nascent recovery from draconian COVID-19 lockdowns faltered.
Against the offshore yuan, the dollar rose 0.07% to 6.8174, heading back towards Monday’s high of 6.8200, a level last seen in mid-May.
The Australian dollar plunged as low as $0.70005, threatening to break below the psychological 70 cent mark for the first time since Wednesday.
The New Zealand kiwi plunged to $0.6349, also the lowest since Wednesday.
The Reserve Bank of New Zealand is expected to hike rates again by half a point on Wednesday, with much focus on whether policymakers follow the Federal Reserve and Reserve Bank of New Zealand. Australia by adopting a more data-driven approach.
“Weakness in the US and Chinese economies is generally a bad sign for commodity currencies,” including the Aussie and the kiwi, wrote Commonwealth Bank of Australia strategist Joseph Capurso in a statement to clients.
“The path of least resistance for NZD is lower until the Reserve Bank of New Zealand policy meeting tomorrow.”