The dollar fell to a two-week low against the euro and lost more than half a percent against other major currencies, the latest sign of its failure to launch this year which has disappointed many investors.
The Australian dollar, looking in better shape this month after a 10 percent slide since October, dived almost 1 percent after an unexpectedly weak domestic jobs report. Sweden's crown also fell on the back of similarly soft data.
A strong dollar against its major currency peers was a central bet for many banks at the start of this year, convinced that a steady reduction in Federal Reserve bond-buying would drive up dollar interest rates and draw in capital.
The failure of 10-year Treasury yields to get closer to 3 percent, however, has left many disappointed.
One explanation for the generally flat performance is that a sell-off in emerging markets, the other side of a shift in global capital due to the Federal Reserve reining in monetary stimulus, has benefited other currencies as much as the dollar.
The dollar index was down 0.4 percent at about 80.50. It fell 0.5 percent against both the yen and euro to 101.99 yen and roughly $1.37 respectively.