Dollar out of favour as focus ahead is of the U.S. non-farm payrolls report, which some investors fear could reinforce the view that momentum in the world’s largest economy is slowing.

Asian currencies were on the march, with the Australian dollar gaining to around 72 U.S. cents, and the Korean won and Malaysian ringgit touching their strongest since March.

The dollar was under pressure on Wednesday from a towering euro and crumbling U.S. yields.

A rebound in the dollar paused on Tuesday, as investors weighed mixed but encouraging economic data against slow progress toward a U.S. government spending package and another week of rising coronavirus deaths.

The U.S. dollar ticked up in early today trade, as a squeeze on crowded short positions gave the dollar a rare bounce. Oil prices fell in the morning of Asian trading hours on concerns about oversupply.

Dollar extend losses. The dollar’s decline came as investors started to doubt the conventional wisdom that U.S. economic growth and investment returns from the U.S. currency would be higher than many other countries.

The Fed is expected to strike a dovish stance at its policy review later in the day and perhaps open the door to a higher tolerance for inflation - something dollar bears think could sink the currency even further.

The U.S. currency’s drop has put a rocket under gold prices and has the yen standing near its highest in four months, the euro just below a 22-month high and the kiwi close to its strongest since January.

The dollar began the week under pressure from all corners as intensifying Sino-U.S. tensions added to worries that the coronavirus resurgence in United States could undermine the recovery in the world’s biggest economy.

Investors are selling the greenback on expectations the U.S. economy will likely underperform its peers in the developed world as coronavirus pandemic continue to rampage.

Heightened Sino-U.S. tension put the yuan on its sharpest slide in nearly two months on Wednesday and helped the greenback find support in Asian trade on Thursday.

The dollar weakened after EU leaders reached an unprecedented $2 trillion stimulus package, plus concern that Republicans and Democrats are struggling to reach consensus on the next round of U.S. economic stimulus measures.