The dollar hit a two-week high against major currencies on Tuesday amid rising U.S. bond yields and a higher demand for safe haven. This came after reports of new infections threatened a possible second coronavirus wave.
The Australian dollar lost 0.8%, at $0.6432, nearing a one-week low.
The New Zealand dollar slipped 0.4%, at $0.6047. The pound slid 0.3%, at $1.2300, while the euro stood at $1.0797.
The dollar index reached a two-week peak of 100.440.
The dollar was supported by a widening U.S. yield curve, as the Federal Reserve dismissed the prospect of negative rates, and as the bond market prepared for a borrowing spree from the U.S. Treasury.
Ten-year U.S. Treasury yields stood at 0.7099% in Asian trade, while two-year yields also rose.
Plans to re-open economies were dwarfed by a spike in new infections as lockdowns were lifted in several countries.
Elsewhere, markets await the release of Chinese consumer inflation data that is expected to rise 3.7% this year.