On Monday, financial markets around the world rallied and the USA dollar touched a high of two-months versus the yen as the most recent jobs data from the US gave investors more confidence in the strength of the US economy.
The currencies of South Korea, Taiwan and Thailand all posted their biggest intraday percentage gains in at least a month as investors pared their greenback positions, although the Philippine peso hovered just above a record low it hit on Tuesday on concerns about the country's trade deficit.
Federal Reserve Chair Janet Yellen's appearance before the House Financial Services Committee allowed Republicans to promote one of their favorite goals - requiring the central bank to undergo audits by the Government Accountability Office, the oversight arm of Congress.
The dollar came under pressure overnight amid fresh concerns over the Trump administration's alleged connection with Russian Federation. The U.S. dollar dropped versus almost every major global currency and hasn't recovered.
Despite a strong start, the home currency succumbed to intense dollar pressure in late afternoon deals amid firming greenback overseas trend. Dollar/yen was last trading at 113.46 ahead of European trading.
Stocks moved modestly higher over the course of the trading session on Monday after initially showing a lack of direction. Westpac's consumer confidence survey for July could have also supported the aussie.
Shanghai composite declined by 0.1 percent to CN¥3,197.54 and Shenzhen composite index dropped 0.3 percent to CN¥3,658.99. The kiwi showed similar pattern, rising to the $0.7237 level, after heavy losses yesterday.
The interest rate forecast on federal funds is among the semi-annual monetary report by United States central bank to Congress. The Fed has raised interest rates three times since December, pushing its benchmark rate to a range of 1 percent to 1.25 percent.
Her comments will be monitored closely for any new insight on the timing of the next US rate hike and clues on how the central bank plans to pare back its massive balance sheet.
Looking at Europe, in a relatively quiet day the euro gained in late U.S. session last night on the political clutter from Washington.
In an interview for a Scottish newspaper, the Press and Journal, published on Wednesday, Bank of England Deputy Governor Ben Broadbent said that while there was reason to see the bank moving towards higher rates, there were "a lot of imponderables".
Japanese government bond (JGB) yields had also tracked the rise in their USA and euro zone counterparts.