Dollar fell against a basket of currencies on Wednesday as a rebound on U.S. stock markets eased investor demand for safe-haven asset triggered by a tumble in Chinese shares earlier in the global trade session. The Shanghai Composite Index slumped 4.3% to a two-month low on Wednesday. Usd/jpy dropped to a one-month low of 93.66 and usd/chf declined to an intra-day low of 1.0623 before recovering.

Although euro hit as low as 1.4084 against the dollar earlier in the day as a 4.3% slide in Chinese stocks sparked anxiety about a global recovery and pushed investors away from risky assets, the single currency rallied to 1.4268 versus the dollar in New York morning as a recovery in stock price and a jump in oil prices boosted investor’s confidence in the market’s run-up. U.S. crude futures surged more than 4% on Wednesday, settling above $72 per barrel after a report showed that the biggest drop in inventories since May. Cross buying in euro also helped to lift the single currency as eur/jpy rebounded strongly from 132.17 to 139.95 while eur/gbp rose from 0.8532 to as high as 0.8626.

Although the British pound tumbled to as low as 1.6375 against the dollar after BoE minutes showed Governor Mervyn King wanted a bigger asset-purchase program to boost the economy, sterling rebounded strongly to 1.6565/70 in New York afternoon in tandem with euro. Earlier in the day, the BoE minutes showed that the nine-member Monetary Policy Committee voted 6-3 to raise bond purchases by 50 billion pound. King and two of his colleagues were overruled in a push to expand the bank’s program by 75 billion pounds to 200 billion pounds, suggesting that concerns remain in the central bank that enough is not being done to steer the U.K. economy out of recession.

Elsewhere in the markets, the Australian dollar, New Zealand dollar and Canadian dollar, known as the three commodity currencies, advanced versus the greenback as the surge in U.S. crude oil futures and spot gold price traded as high as $945.00/ounce compared to $937.00/ounce late in New York on Tuesday. Aud/usd rose from 0.8175 to 0.8315, nzd/usd gained from 0.6665 to 0.6760 while usd/cad tumbled from 1.1114 to 1.0944 before stabilising.

Data to be released on Thursday include Switzerland trade balance and ZEW index; U.K. PSNCR and retail sales; Canada wholesale sales; U.S. jobless claims, leading indicators and Philadelphia Fed survey.