The dollar stood 0.1% lower at 98.925 against a basket of six major currencies by 0529 GMT. After a firm open, the Chinese onshore yuan rose 0.2% to 7.166 against the dollar, moving off the 11-year lows it had clung to recently.
Yet again, the central bank's official midpoint fix was stronger than expected, which added to the yuan's support. Sentiment was also helped by a private survey showed China's services sector expanded at the fastest pace in three months in August as new orders rose, prompting the biggest increase in hiring in over a year.
"Overall, Asian FX may receive a get-out-of-jail card for today, if the markets continue to focus on USD weakness," analysts at OCBC wrote in a note. However, they added that given the fragility of the global economy outside the United States, the dollar's vulnerability overnight may prove to be transient. The Indian rupee recovered 0.3% after a sharp drop in the previous session, while the Korean won added 0.5%.
The Malaysian ringgit firmed 0.3% after data showed the country's exports rose unexpectedly in July, rebounding from a drop in the previous month. The exports were lifted by solid demand for manufactured goods and higher shipments to China. The Indonesian rupiah logged a 0.3% gain, while the Thai baht rose 0.2%.