US stock index futures were slightly higher on Monday, the first trading day of the fourth quarter, amid expectations of a more hawkish successor to Fed Chair Janet Yellen.
The dollar index, which tracks the greenback against a basket of six major rivals, slipped 0.2 percent to 93.433, off a six-week high of 93.92 touched on Tuesday following strong USA manufacturing figures.
"Now everyone is thinking that Powell is the more likely choice and thinking of Powell as someone who will do very very gradual policy incrementations".
A more hawkish Fed candidate would likely prompt investors to bet on more aggressive normalization of monetary policy, to the dollar's benefit.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slumped 2 basis points to 0.06 percent, the yield on long-term 30-year slipped almost 1 basis point to 0.87 percent and the yield on short-term 2-year traded 1 basis point lower at -0.12 percent by 03:25 GMT.
From a policy standpoint, he may de-emphasize the Fed's reliance on its inflation target as a guide for interest rate hikes, something that's been frustrating for the Fed and periodically perplexing for markets.
It has been dogged this week by worries over Catalonia, after a violence-marred independence referendum.
Meanwhile, Japan's Nikkei 225 rose 0.28 percent to 20,672.00 by 03:50GMT, while at 03:00GMT, the FxWirePro's Hourly Yen Strength Index remained neutral at 62.35 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend).