The U.S. dollar index, which tracks the greenback against a basket of other currencies, slipped 0.2% to 94.96 by 1:42 AM ET (05:42 GMT).
Stuart Ritson said “In an environment where people are concerned about rising volatility, the dollar tends to do well – especially versus higher-risk currencies such as the Aussie and Canadian dollar,” head of Asian rates & foreign exchange at Aviva (LON:AV) Investors.
Ray Attrill, head of foreign exchange strategy at NAB said “There seems to be a disconnect and there is no obvious explanation for why the dollar did not fare better on a risk-off day.
The AUD/USD pair gained 0.4% to 0.7075. While not a directional driver, RBA assistant governor Luci Ellis said at the Melbourne Institute’s Economic and Social Outlook Conference that policy of the central bank needs to be expansionary to help the economy absorb spare capacity in the labor market.
The safe-haven Japanese yen strengthened as the USD/JPY pair slipped 0.1% to 112.17.