The Chinese yuan headed in the opposite direction with the central bank setting the midpoint at a more than four-year low for a second day, a sign that Beijing is quietly permitting the currency to depreciate after it was included in the IMF's reserve basket.
The People's Bank of China set the midpoint rate CNY=SAEC at 6.4236 per dollar prior to market open, 0.1 percent weaker than the previous fix of 6.4140.
The spot marketCNY=CFXS opened at 6.4300 per dollar, its weakest since Aug. 12, and was changing hands at 6.4385, compared with the previous close of 6.4280.
The dollar fetched 121.63 yen JPY= after tumbling overnight to a 1-month low of 121.07 yen as the Japanese currency attracted safe haven bids amid the ongoing rout in commodities.
With the greenback on the back foot against the euro and yen, the dollar index .DXY hovered near a 1-month low of 97.223 struck overnight.
The U.S. currency was hurt as Treasury yields fell on a flight to safety to government debt, prompted by falling oil prices and a decline on Wall Street.
The S&P 500 .SPX tracked weaker commodities and lost 0.8 percent on Wednesday, while the Dow .DJI lost 0.4 percent and the Nasdaq .IXIC shed 1.5 percent.
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