It slid 1.4 percent to its lowest in almost three weeks.

New York Fed President William Dudley had said on Wednesday an interest rate hike next month seemed less appropriate given the threat posed to the US economy by the recent market turmoil.

Dudley’s remarks carry additional weight because he is known to be a close ally of Fed Chairwoman Janet Yellen. But the Australian Dollar was able to stage a modest recovery during the local session as China’s Conference Board Leading Index improved from 328.2 to 331.2 in July – a welcome piece of good news from the Asian nation.

After opening with a 1.7% gain, the Shanghai Composite Index was recently trading up 1.5%.

The Dow jumped 4 percent and the S&P 500 rose 3.9 percent.

It rose to SG$1.4034 from SG$1.4005 on Wednesday, to 46.70 Philippine pesos from 46.62 pesos, and to 35.65 Thai baht from 35.58 baht.

Fresenius also posted strong gains after the healthcare group said it would increase its 2015 dividend by more than 20%.

Whether investors will continue to buy back the dollar will hinge on the U.S. economy’s outlook, said Masashi Murata, currency strategist for Brown Brothers Harriman in Tokyo.

With Wall Street stocks tumbling, the dollar’s rebound from steep losses Monday came under some pressure. Furthermore, the currency was boosted after the Reserve Bank of India Governor Raghuram Rajan said he was not in favour of depreciating the rupee and joining a global wave of monetary measures that have weakened currencies.

Copper prices were down 3.1 percent. While today’s South African second quarter growth and June Mining Production numbers may have an influence on the Rand’s performance, the global economic climate will remain the main cause of fluctuations.

They are being hit particularly hard by the slowdown in China, a major market for commodity exports, and the broader combination of plunging commodity prices and glutted markets. Economists had expected the index to tick down to 53.8. In the currency market, investors reacted by unwinding recent moves that had lifted both the yen and the euro. “International developments have increased the downside risk to US economic growth somewhat”, he said.

“I’m a long way from quantitative easing”.

“It is too early to throw in the towel on a rate hike this year – to do so at this point we think would send the wrong message to markets and risk pushing market jitters to greater heights”. Given his high rank, if Fischer signals that the Fed should wait, September looks very unlikely.

That leaves only the pound who are growing the fastest of any advanced country, have no inflation and a hawkish central bank.

“Rather than getting ahead of the game with a well thought out plan for stabilising the economy, the PBOC appears to be reluctantly easing policy any time there’s a drop in share prices”, wrote Jasper, market analyst at CMC Markets.