The European Single Currency, euro was supported by signs of stability in Italian politics and the dollar maintained an uptrend against the yen after a strong U.S. jobs report sparked bets of three more U.S. rate hikes by the end of year.
In early Asian trade, the euro traded almost flat at $1.1687 , having reached $1.1745 the previous day, its highest level since May 24.
Since hitting a 10-month low of $1.1510 a week ago, the common currency has been recovering as investors took comfort from the formation of a coalition government in Rome.
The euro fell 0.3 percent against the dollar to $1.1665.
The big spending plans of the two anti-establishment parties that make up the coalition have raised some concerns, but new Economy Minister Giovanni Tria has said that none of the parties want to leave the euro zone and neither does he.
The common currency rose to 128.50 yen, up 3.0 percent from an 11-month low of 124.82 yen touched a week ago, Reuters reports.
Meanwhile, the dollar traded at 109.95 yen, up 0.1 percent and extending its recovery from a five-week low of 108.115 yen touched on Tuesday.
The Australian dollar slipped a tad after the Reserve Bank of Australia kept its policy on hold as widely expected, after 1.05 percent gain on Monday, its second biggest gain so far this year.
The Aussie traded at $0.7633, down 0.2 percent on the day. On Monday it had hit a six-week high of $0.76665, thanks in part to surprisingly robust local corporate profits and retail sales data.
