As Treasury yields fall and traders prepare for a key US inflation report later today, the dollar fell to a month-low versus the euro on Wednesday.

The dollar fell by 0.24% to 7.2232 yuan in offshore trading, after reaching its highest level since May 1 at 7.2460 overnight. Despite the overall weakness of the dollar overnight versus the majority of its peers, it continued to rise against the yen. The dollar fell 0.12% to 156,245 yen on Wednesday, but hit 156.80 yen overnight. The US dollar index, which measures currency against six major rivals but is heavily weighted by the euro, fell by 0.11% to 104.94, after plunging to a week and a half low of 104.92 earlier

In addition, the euro rose slightly by 0.03% to $1.0823 during trading hours in Asia, and reached $1.0828 for the first time since April 10.