The U.S. dollar/Japanese yen pair updated to a 24-year high on Wednesday. This was aided by data on the U.S. economy, which reinforced expectations of an aggressive tightening of the Fed's policy.

The US dollar/Chinese yuan pair fell to a two-year low, approaching a psychologically important high of 7, despite Beijing's efforts to rein in the weakening of its currency.

The euro/U.S. dollar pair is trading near its 20-year low on Tuesday, well below parity, as EU ministers prepare for a meeting scheduled for Friday to discuss the energy crisis.

Data released on Tuesday unexpectedly showed an acceleration in U.S. service sector activity in August, reinforcing the view that the U.S. economy is not in a recession, so the Fed may raise its key rate again by 75 basis points at its September 21 meeting. The markets are now pricing in a 75% chance of such a scenario, while the probability of a 50-point hike is estimated at 25%.

The dollar/yen rose to 144.38 for the first time since August 1998. The Japanese currency is highly sensitive to long-term U.S. yields, and the 10-year Treasury yield reached its highest since July 16, 3.365%, during Wednesday's session in Tokyo.