The euro fluctuated on Wednesday as concerns over an escalation in the global trade triggered the dollar and a survey showing weak euro area manufacturing growth in July kept traders anxious.
The dollar index gained 0.2 percent .DXY versus a basket of its major peers before retreating to trade up 0.1 percent at 94.611.
The euro slid 0.1 percent to $1.1684, dragged down by the stronger dollar and a Purchasing Managers' Index survey that showed manufacturing production was rising but had edged up only slightly from June's 18-month weak point.
The Chinese yuan dropped more than half a percent in offshore trading on reports of the new U.S. tariffs. A survey showing country's manufacturing expanded at the slowest pace in eight months in July also hit the currency.
The yen was firm at 111.89 against the greenback. USDJPY may test the 112.20 resistance, Morgan Stanley analysts expect.