Dollar Retreats

Amidst hope that energy shortages will be avoided, the euro extended its overnight rally on Wednesday as the US dollar declined.

As scheduled maintenance for Nord Stream 1 is completed on Thursday, gas flows are expected to resume on time.

Early Asia trade saw the euro up nearly 0.2% to $1.0239 after gaining 0.75 percent overnight.

On Thursday, the ECB is expected to raise interest rates by 50 basis points, more than expected.

The euro has fallen 2.3% since July 1, due to fear of a sharp eurozone recession and hot US inflation.

A weakened greenback boosted other major currencies as central banks worldwide stepped up efforts to tame inflation.

At next week's Federal Reserve policy review, there are fewer expectations of a big 100-basis-point rate hike.

In addition to rising 1.3% overnight, the Aussie was steady at $0.69055.

Earlier that day, RBA minutes showed a need for more policy tightening in order to curb inflation.