The U.S. dollar traded lower against its major counterparts in the Asian session on Wednesday on growing tensions between the U.S. and North Korea, after the U.S. President Donald Trump threatened to meet North Korean nuclear tests "with fire and fury."

The remarks followed a new report asserting that U.S. intelligence has assessed that North Korea has successfully produced a miniaturized nuclear warhead that can fit inside its missiles.

The move raised worries that Pyongyang could launch a pre-emptive attack on the US.

North Korea responded to Trump's comments, claiming that it was "carefully examining" a strike on US Pacific territory of Guam.

The greenback was higher against most major counterparts on Tuesday, after upbeat Jolts report underscored confidence in US labor market.

The greenback declined to a weekly low of 0.9657 against the Swiss franc, compared to Tuesday's closing value of 0.9741. If the greenback-franc pair extends fall, 0.96 is likely seen as its next support level.

The greenback slipped to near a 2-month low of 109.74 against the Japanese yen and held steady thereafter. The pair closed Tuesday's trading at 110.34.

Data from the Bank of Japan showed that Japan's M2 money stock rose 4.0 percent on year in July, coming in at 978.5 trillion yen.

That exceeded expectation for 3.9 percent, which would have been unchanged from the June reading.

The greenback fell back to 1.1762 against the euro, from a high of 1.1720 hit at 10:15 pm ET. On the downside, the greenback may target support around the 1.19 mark.

The greenback that closed Tuesday's trading at 1.2993 against the pound edged down to 1.3028. The next possible support for the greenback is seen around the 1.31 level.

Looking ahead, Canada building permits data for June is due at 8:30 am ET.

In the New York session, U.S. wholesale inventories for June are set for release.

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