On Wednesday, the dollar index remained close to its highest point in more than four months, pinning the Japanese Yen near its lowest in decades.

The Euro held steady at $1.0766 and Sterling at $1.2571, which left the Dollar index – measuring the currency against six major rivals – flat at the time of writing at 104.82, after exceeding the 105-mark on Tuesday.

Japan's Yen was trading at 151.7 per dollar, having only marginally recovered from last week's dip to a 34-year low of 151.975, Reuters reports.

Although the Bank of Japan hiked rates for the first time in 17 years, policymakers' commitment to slow down on further hikes has impacted the Yen, particularly taking into account the Japan-US yield gap.

In addition, the threat of an intervention by Japanese authorities has provided resistance to the dollar.

"It certainly seems like the market is very fearful of the 152 (Yen per Dollar) level," said Jane Foley, head of FX strategy at Rabobank.

She added that she was monitoring to observe whether geopolitical tensions would have any impact.

"There is a feeling from gold and oil that there is a safe haven bid. But the question is why isn't it this affecting the dollar more, because the dollar was off against just about everything yesterday, and could this impact the Yen or Swiss Franc too?"

All three currencies typically benefit from a flight to safety, but the Swiss Franc is also facing pressure, trading at its weakest level in several months against both the Dollar and Euro. 

Elsewhere, in China, the onshore Yuan was trading at 7.2357 per dollar, close to a four-and-a-half-month low reached on Tuesday. Meanwhile, the offshore Yuan edged down to 7.2576 per dollar. 

Furthermore, both the Australian and New Zealand Dollars have faced pressure, the Reuters report adds.

The Aussie fell 0.13% to $0.6509 at the time of writing, while the New Zealand Dollar declined to $0.596.