Usually it's the other way around, and it means investors are anxious about the short-term health of the economy.
Global stocks tumbled on Tuesday as a flattening Treasury yield curve sparked recession warnings, while optimism sharply waned that the United States and China would quickly resolve their trade dispute. The euro was 0.11 percent lower.
Australian stocks lost 1 percent, pressured by global losses.
The dollar was 0.65 percent lower against the Japanese yen, which tends to benefit during geopolitical or financial stress as Japan is the world's biggest creditor nation.
The Dow retreated 3.1 per cent and the Nasdaq sank 3.8 per cent yesterday.
Following Wall Street's overnight tumble, S&P e-mini futures nudged up 0.4 percent in Asian trade on Wednesday.
The dollar fell broadly on Tuesday as U.S. Treasury yields slipped, feeding fears that the Federal Reserve could pause in its rate-hike cycle, while an inversion in part of the yield curve was taken as a red flag for a potential recession.
The dollar index, which measures the greenback against a basket of six major currencies, edged up about 0.1 per cent, even though the USA currency was under pressure as declining Treasury yields raised concerns over economic growth. Normally the longer term a project or a financial investment, the higher the return, simply because there is more uncertainty and thus more risk.
U.S. Federal Reserve officials convinced the massive U.S. bond market has fundamentally changed in the last decade are about to test their commitment to that idea against investors who have begun betting against the U.S. central bank's ability to continue raising interest rates.
DoubleLine CEO Jeffrey Gundlach believes that the recent inversion of the U.S. Treasury yield curve is a signal that the economy is set to weaken. A yield curve inversion preceded both the first tech bubble and the 2008 market crash.
There was added confusion over when the 90-day truce period, during which the US and China would hold off on imposing more tariffs, would start. "That said, it is true that the economic outlook is murkier than before", said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.
British Prime Minister Theresa May suffered embarrassing defeats on Tuesday at the start of five days of debate over her plans to leave the European Union that could determine the future of Brexit and the fate of her government. The developments again called into question the extent of a trade agreement the White House said Trump had struck with Chinese President Xi Jinping over dinner at the Group of 20 summit on Saturday.
Failure would raise the spectre of fresh US tariff action and potential Chinese retaliation as early as March.
On Tuesday, the greenback shed almost 0.8 per cent against the yen, which acts as a safe haven in times of geopolitical and financial turmoil as Japan is the world's biggest creditor nation.
On Tuesday, the greenback shed almost 0.8 percent against the yen, which acts as a safe haven in times of geopolitical and financial turmoil as Japan is the world's biggest creditor nation. US gold futures were also down 0.4 percent at $1,241.55 an ounce.
Oil prices fell, weighed down by swelling USA inventories and concerns that slowing economic activity will sap demand for commodities. U.S. light crude was last up 30 cents at $53.25.