The dollar rose to two-and-a-half-month highs, while the Japanese yen fell to three-month lows.
The yen was the biggest driver, and the dollar-yen pair rose to break through the levels of 152 yen for the first time since July 31 last as US Treasury bond yields and the dollar continued to rise.
Expectations of a strong and high-pace interest rate cut by the Fed also faded after a series of upbeat economic data.
The CME FedWatch tool showed that the markets are now pricing in a 91% chance of a moderate cut by a quarter of a basis point next November.
Expectations were also boosted by Treasury yields, as the yield on benchmark 10-year Treasury bonds, which rose to its highest levels since last July, reached levels of 4.235% on Wednesday and maintained pressure on the yen.
With less than two weeks left before the US presidential election and the growing likelihood that former Republican President Donald Trump will win the US presidential election next month, this also supported the dollar and put pressure on the yen, which could reach levels of 159 yen.
